The UK’s Financial Reporting Council (FRC) on May 27 issued a revision of its auditing standard on the responsibilities of auditors relating to fraud.
Revisions in ISA (UK) 240 (Revised May 2021) – The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements are designed to better clarify an auditor’s responsibilities. The revisions include guidance regarding the requirements for the identification of risk of material misstatement due to fraud and the steps to respond to those risks, the FRC said in a statement.
The revised UK standard applies to audits beginning on or after December 15, 2021, with early adoption permitted, it said.
The FRC has also published a feedback statement on its consultation on the revision of the
standard and an impact assessment.
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