Lecture 2 Flashcards
IAASB- Strategy
support global financial stabilty
enchane the role, relevance and quality of assurance
facilate adopt and implement of standards
FRC
more stringent than international standards
* ISA- international standard on auditing
FRC goal
adpated international standards for uk- adds to it
inform auditors about work required from them
enchance rep of and increases public confidence in profess
FRC plan to serve public interest
- set uk corp goverance and stew codes
- set uk stand for accounting and acturial
- monitior and take action to promote qual of corp report
- operate independantly enforcement arrangements for acc and actuaries
- comptenent auth stat audit in uk
set audit and ethic stand
monitor and enforce audit qual
oversight of statut audit reg in uk
FRC membership COMITTEE
majortiy of members shouldnt be practicing accountants, auditors or actuaries
1. not for 5 year- carry out stat audits, voting rights/ member
2. be working
Reg of how audits done (gov)
respons for maintaining the legal framework for audit reg
most stat requir come from the EU at point of transition
Reg of how audits done (FRC)
gov delegate most reposn to them
FRC respon to recog and oversee the reg of auditors by professional accountancy bodies
Reg of how audits done (Account profess)
- prim respons for supervision of their members in profess capacity
- must have effec arrange in place that their audit qualif meet stat require
- as recog supervisory bodies, they must have in place effect arragne to registration, monitor and disclpin auditors
Comp act 2006 -small comps
not required by all comps if 2 out of 3 conditions met
1. turnover- before 2016 £6.5m, after £10.2m
2. TA- before 2016 £3.26m, after £5.1m
3. no of employ- before and after <50
what auditor must give his opinion on
Annual accounts
- prep, truth
directors report
- truth, reflect actual busin
who may audit a comp
individ
* approp qualif, RQB- ACCA
* Member of/ resigester with, RSB- ICAS
Director legal respons
prep accounts
keep prop account records
safegaurd assets and take steps to prevent and detect fraud
provide auditors with all relevant audit info
Auditors legal respon
- opinion - director respons
- give a true and fair view
- properly prepated in accord with
- consistent with
- non-compliance not prop disclosed
Audtior exposure to legal liability
- Breach of stat duties
- Breach of common law duties
Breach of stat duties
civil wrong or criminal act
* fine or imprisonment