Released 07 October 2021
The Institute of Chartered Accountants in England and Wales (ICAEW) has published an explanation of the new ISA (UK) 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements (May 2021), which looks to clarify the auditor’s roles and objectives regarding fraud, with a focus on enhanced professional scepticism.
ISA (UK) 240 has been significantly updated for the first time in 16 years. The changes are a response to recent public discussions on the role of audit in identifying fraud, including high profile cases in which auditors were found to fall short of their responsibilities when it comes to fraud.
The ICAEW’s insight includes comments from James Ferris, the FRC’s Director of UK Auditing and Assurance Standards.
More information can be found at https://www.icaew.com/insights/viewpoints-on-the-news/2021/Oct-2021/FRCs-changes-to-fraud-auditing-standard-explained.