The Financial Reporting Council (FRC) has launched a consultation on the proposed revision of its UK auditing standard ISA (UK) 240 (Updated January 2020) - The Auditor's responsibilities Relating to Fraud in an Audit of Financial Statements.
ACCA welcomes the proposed International Standard on Auditing (UK) 240 (Revised 2021), The Auditor’s responsibilities Relating to Fraud in Audit of Financial Statements, as part of the FRC’s response to the concerns regarding the lack of clarity in the standard as to the auditor’s obligations raised particularly in the Brydon’s report.
ACCA conducted a global research project relevant to these concerns, published on 9 May 2019, entitled Closing the expectation gap in audit. The findings of our research show that the public sees audit as part of the solution for preventing corporate failure. Furthermore, our research found that there is demand for a wider audit scope including assigning more responsibilities to the auditor for identifying and reporting fraud.
To read in full, please download the consultation response.