The Financial Reporting Council (FRC) has published a staff guidance note to support auditors who plan to adopt revised ISA (UK) 700 Forming an Opinion and Reporting on Financial Statements early, instead of waiting for the standard to come into effect later this year on 15 December 2026.

The guidance note has been issued to help preparers who want to implement the revised standard in advance of the effective date but the FRC warned: ‘Early adoption raises several issues for which auditors need to be aware.’

While the revisions to ISA (UK) 700 are designed to ‘simplify and declutter the auditor’s report and increase the quantity of useful information for users of audited financial information’, the FRC said, early adoption could create some problems for auditors.

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