The UK Financial Reporting Council (FRC) has revised three audit standards - ISA (UK) 700, ISA (UK) 701 and ISA (UK) 720 - to simplify disclosure requirements for auditors.
The regulator argues that auditors’ reports have become excessively long and are often filled with boilerplate language. It has therefore removed reporting requirements deemed unnecessary, sharpened the focus on decision-useful information, and sought to align more closely with international standards.
In addition, the FRC has released new guidance clarifying auditor responsibilities under the revised Governance Code.
The revised standards take effect from 15 December.