Newswire April 2023

AUDIT & ACCOUNTING

AUDIT AND ACCOUNTANCY

Consultation on proposed amendments to Audit Enforcement Procedures

The Financial Reporting Council (FRC) has announced a review of the Audit Enforcement Procedure (AEP) and is seeking feedback and comment on the proposed amendments. The consultation is open until 5 May 2023. The FRC would particularly welcome the views of statutory auditors and audit firms and other regulatory bodies, including professional associations.

FRC issues FRED 83 Draft amendments to FRS 102

The FRC has issued FRED 83 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – International tax reform – Pillar Two model rules, which proposes to introduce a temporary exception to the accounting for deferred taxes arising from the implementation of the OECD’s Pillar Two model rules, alongside targeted disclosure requirements.

This change reflects equivalent changes made to IAS 12 Income Taxes that have been made by the IASB,

FRC updates 'Our Approach to Audit Supervision'

The Financial Reporting Council (FRC) has updated its Our Approach to Audit Supervision document, outlining how it supervises audit firms. Reflected in the updated document are significant additions to the FRC’s supervision approach that have been established over the last two years. These include the introduction of a Public Interest Entities Auditor Registration, Supervisor letters, and Single Quality Plans.

FRC Releases New Guidance on Audit Firm Eligibility Criteria

The FRC has issued guidance for audit firms on eligibility criteria in the context of the firm’s system of quality management and the performance of engagements. ISQM (UK) 1 and ISQM (UK) 2 have been reissued with updated footnotes to reflect this guidance.

ICAEW Technical Advisory Service issues two new helpsheets

The following new helpsheets are available to ICAEW members.

• Ineligible companies and groups – This helpsheet aims to help members understand when a company or a group is ineligible for the small companies regime.
• Is an audit required for a company? – This helpsheet aims to help members understand when a company requires an audit under the Companies Act 2006 and potential routes to audit exemption.

ICAEW Issues Audit New 73

The latest issue of Audit News published by ICAEW includes guidance on inter alia:

• Audit quality concerns from 2022 monitoring, with thematic weaknesses noted in the areas of group audits and inventory / stock and long-term contracts.
• Key ISQM1 resources
• New UK Audit Regulations

CHARITIES

Charities Act 2022: information about the changes being introduced

The Charity Commission has updated its Information on the changes being introduced by the Charities Act 2022. The latest changes provide information on further changes due to be introduced in Spring 2023.

MONEY LAUNDERING

Trust or company service provider guidance for money laundering supervision

HMRC has issued updated guidance to help trust or company service providers (TCSPs) meet their requirements for money laundering supervision, including customer due diligence, record keeping and reporting suspicious activity. AML Guidance issued by the CCAB applies to accounting services; however, this guidance applies to TCSPs when providing services such as company formation or providing a registered office.

PROBATE

The Legal Ombudsman's Scheme Rules have changed

The Legal Ombudsman's Scheme Rules set out the framework for how complaints are resolved between authorised persons and complainants under the scheme. Amended rules have been published incorporating a number of revisions to the existing Scheme Rules that came into effect on 1 April 2023. Updates to engagement letters will be required to reflect these changes.

Lifetime Allowance Guidance Newsletter

HMRC has published the Lifetime Allowance newsletter to update stakeholders on the latest news for pension schemes. To read more, please click here.

Class 3 NIC

The Government is extending the deadline to 31 July 2023 for individuals to pay voluntary NIC. Generally, individuals can usually only fill gaps in their NI record from the past 6 years. However, as part of transitional arrangements introduced alongside the new State Pension from April 2013, individuals were given until 5 April 2023 to pay voluntary NIC to make up any gaps in their NI record between 6 April 2006 and 5 April 2016. The 5 April 2023 deadline is being extended to 31 July 2023. To read more, please click here.

New R&D guidance

HMRC have released new guidance on pre-claim notifications and the more detailed information required to make a claim. To read more, please click here.