In July 2020 the Financial Reporting Council (FRC) published extensive revisions to the International Standard on Auditing (ISA) (UK) 315: Identifying and Assessing the Risks of Material Misstatement.

The revisions are effective for audits of financial statements for periods beginning on or after 15 December 2021. The changes were made by the International Auditing and Assurance Standards Board (IAASB) and adopted by the FRC in its UK version of the standard to address concerns about audit quality. The FRC consider the new standard to improve significantly on the old version, and that the revised standard is better designed to “meet the challenges of an evolving business environment and the needs of users and protect the public interest.”

We have produced a guide to the changes for auditors and changes for the annual audit, downloadable below.