FRC consults on revised auditing standard for identifying and assessing risks of material misstatement

Released 28 January 2020

The Financial Reporting Council (FRC) has launched a consultation on the proposed revision of its UK standard (ISA (UK) 315 (Revised – June 2016) – Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment.

The FRC’s changes reflect revisions made by the International Auditing and Assurance Standards Board (IAASB) and are designed to establish a more robust and consistent risk identification and assessment. A more robust risk assessment process enhances the basis upon which auditors design and perform audit procedures that are responsive to the risks of material misstatement and, thereby, obtain sufficient appropriate audit evidence to provide a basis for the audit opinion. The FRC has strongly supported the IAASB’s work.

The consultation runs until 4 April 2020.

Further information, including a link to the consultation and impact assessment can be found here.

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