Audit is evolving apace at the moment, with recent updates to international standards and changes introduced to UK regulations from 1 October 2024. And you can expect further news to come in the year ahead.    

It is vital that CAs stay up to date on these important developments, for the benefit of their clients, their firm and for their own CPD purposes. To support them with their learning, ICAS, in partnership with BPP, is offering two half-day audit courses in one day on 3 March.

The first course, Audit Technical Update for Audit Teams, takes place in the morning, from 9.30am–12.45pm. The second half-day session, Audits of Group Financial Statements – ISA (UK) 600, is scheduled for 2pm–5.15pm. Both are online-only. 

The aim is to give auditors some time to focus on these technical areas through a format that combines lecture, discussion and exercises.

The presenter is Terry Rickeard, Head of Audit Programmes at BPP, which he joined five years ago. Despite his sideline as a professional sports photographer, Rickeard’s audit experience is extensive, as he explains: “I’m now in my 16th year as an auditor. I trained in the public sector with the Audit Commission, before moving into a technical methodology and training role, which covered all sectors, at Grant Thornton in London.”

Describing what delegates can expect, Rickeard says: “The courses are for CAs who want an update on both recent and upcoming changes within the audit industry. We will cover topics such as changes to international standards on auditing (ISAs), regulations and understanding the findings from the regulator. The courses also count towards annual CPD requirements,” he confirms.    

“They provide essential updates to ensure auditors are completing their work in accordance with the most recent ISAs, and they provide an opportunity to reflect on what the industry could be doing better and applying that to our work.”

Course content and format

The general audit update, held in the morning, encompasses subject matter related to audit planning; changes to thresholds; professional scepticism and audit sampling; and a shorter version of the ISA (UK) 600 material. The afternoon course, which features that standard in more depth, covers the recent changes to group accounting audits, applicable to those beginning either on or after 15 December 2023.

Considering the recent updates to audit regulations and other changes on the way, Rickeard explains: “These include changes to criteria to allow audit qualifications of certain overseas individuals to now be recognised in the UK, and also changes which require that where certain decisions need more than a simple majority vote for approval by firms, audit-qualified persons must be able to control any such ‘super-majorities’.”

Reflecting on the challenges of auditing group financial statements and how the Financial Reporting Council (FRC) has updated the auditing standard, to assist auditors in their work, Rickeard says: “The revision to the ISA (UK) 600 standard has some quite significant changes overall. On our courses, we look at how the changes impact materiality; changes to definitions such as ‘engagement team’ and ‘significant components’; communication between the group and the component; more detailed requirements for the group engagement partner; controls and IT; implications if you’re the component auditor; and use of the FRC ethical standard for components in other jurisdictions.”

“If we don’t keep up to date as individuals and firms, we could find ourselves in a position where we aren’t delivering ISA-compliant audits”

Terry Rickeard, BPP

The format includes working through a case study, which delegates particularly welcome. “Attendees like to review what they’ve learned from the course by discussing the case study in groups, and considering how it might apply to their client portfolio,” he says.

And not keeping abreast of all these important audit changes could have far-reaching results. “If we don’t keep up to date as individuals and firms, we could find ourselves in a position where we aren’t delivering ISA-compliant audits,” says Rickeard.

He concludes: “Understanding changes within the industry will help audit teams become more efficient and compliant in their work. For example, better understanding what we can do as part of our planning will help us create better testing strategies, address the real risks within financial statements and remove some of the time pressures that inefficiencies bring.” 

Learn more about Audit Technical Update and Audits of Group Financial Statements – ISA (UK) 600