Dear SPA,
Your help and support are needed again.
You kindly responded to my request for your comments on auditing. We had many replies from auditors, former auditors, and fellow practitioners.
I wrote to the FRC about audit regulations for Less Complex Entities (LCE) and had some correspondence with them since.
SPA has been asked to meet with them.
I have been supporting Martyn Jones a former President of ICAEW who is working hard with his contacts to help auditors of LCE. I thank him for his encouragement and his thoughts.
I welcome more comments from those that have answered previously and all members.
What is your view?
- How would a 158-page ISA for LCE compare with the 1,000 pages plus suite of full ISAs?
- What impact do you think would the new replacement standard have on audit quality and cost, your staff, the audit market and on the SMEs and charities at the receiving end of audits?
- Would it help or hinder the audit inspection process, the time to think and to provide more helpful insights?
- Is it more or less likely that you would find fraud and focus on the big issues if there was a reduction in the checklists to complete?
- Would you miss the 181 page ISA (UK ) 315 ( Revised July 2020) on identifying and assessing the risks of material misstatement from a quality perspective?
- Finally, FRS102 has jumped to 484 pages.
Please forward your response to howard.gross@spa.org.uk
Kind regards,
Howard Gross BFP FCA FCCA CTA Director
