The Financial Reporting Council (FRC) is due to release the final International Standards on Auditing (ISAs), now updated from the original draft releases, to reflect the introduction of the statutory instrument bringing into force the new EU Audit Directive & Regulation in the UK
The key change on the standards is to rename the ISAs as applicable in the UK only as the Irish regulator, IAASA has been appointed as the Competent Authority for Audit in Ireland, and will be responsible for issuing standards for use in Ireland.
Released originally on 27 April 2016 in draft format, the audit regulator and standard setter is now re-releasing the final standards with minor changes to reflect the new rules and a few clarifications to the Ethical Standard.
At the time, the FRC updated 23 of the existing 35 ISAs, with only 12 remaining unchanged. The standards have been revised to simplify the language and the application material has been expanded to clarify the inter-relationship between the ISA requirements and the requirements of the directive.
As briefed in April, the FRC has made only minor changes as a result of the final legislation, essentially updating four footnotes in the Ethical Standard and insert a revision to footnote 44 to clarify how the non-audit services cap is applied.
Details of the ISAs amendments are available here
The new FRC ISA 2016 documents are here
Further reading:
Snapshot: FRC revises ISAs to reflect EU Audit Directive rules