Deloitte’s response to APB’s proposed revisions to ISAs (UK and Ireland) 315 and 610
The Auditing Practices Board (APB) of the Financial Reporting Council (FRC) consulted on its proposed revisions to International Standards on Auditing (ISAs) (UK and Ireland) 315 (Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment) and 610 (Using the Work of Internal Auditors), designed to:
- Enhance the auditor’s risk assessment procedures for entities with an internal audit function, and
- Provide a more robust framework for evaluating and using the work of an internal audit function, including - in appropriate, limited, circumstances - obtaining direct assistance from internal audit staff under the supervision and control of the external auditor.
Note: the APB has since been disbanded and the FRC’s work on audit and assurance is now carried out by the Audit and Assurance Council.
Deloitte supports the APB/FRC’s aim of continued convergence with IAASB standards and therefore agrees with the proposals to adopt the revised ISAs 315 and 610, together with related conforming amendments, within ISAs (UK and Ireland).