The Audit and Assurance Faculty have developed a new service which may meet the needs of some audit exempt companies where either an internal or external party requires some form of assurance which is less than that of a full audit.
The new Assurance Review Engagement (Tech 09/13) is based on a recently revised International Standard and in part is designed as being appropriate for both existing audit exempt companies and those which may become so when the revised EU Accounting Directive enters UK law and increases the audit exemption criteria.
The recent launch was led by the ICAEW National President Martyn Jones and attended by representatives of Banks and Business Angels as well as a number of practitioners from firms of all sizes.
As audit exempt businesses become larger there is ever more risk that interested parties (whether owner managers, lenders or credit reference agencies) will become increasingly concerned if no audit has been undertaken, but clearly the costs of a Clarified ISA Audit can often be greater than the benefit of having the audit carried out! The Review Engagement has been developed as a means of providing an appropriate level of confidence.
Mercia is currently developing a suite of manuals, training and support to help firms to offer and carry out these and other types of assurance engagements, providing firms with sufficient practical and cost effective guidance.