UK: FRC position paper for the revision of Auditing and Ethical Standards

The Financial Reporting Council has today published a position paper explaining its proposed timetable for the revision of its Auditing and Ethical Standards: see here (pdf). This follows a consultation that concluded last month (about which see here, pdf).

The FRC states that a public consultation on the revised text of the standards will start in July 2019, in order that the revised standards can apply to financial periods beginning on or after 15 December 2019. The FRC also explains how it will address some of the issues raised by the Kingman Review and the on-going Competition and Markets Authority review of the UK statutory audit market.

The position paper also explains the implications for certain independence requirements in the current standards should the UK leave the European Union without a withdrawal agreement or transition period (see further the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2018). These implications are also covered in the letters the FRC has sent to Heads of Audit and CEOs: see, respectively, here (pdf) and here (pdf).