On 23 January 2014, the FRC published its report on fraud risks and laws and regulations in audit, which sets out the principal findings of the second thematic inspection review of the FRC's Audit Quality Review team during 2013. The findings from its first thematic review were published in December 2013 and reported on in our January 2014 newsletter. Key messages to audit firms included:
- increasing their focus on identifying fraud risk factors when planning and conducting the audit; and
- improving their identification and assessment of the laws and regulations affecting the entity, in particular those that may have an impact on the financial statements.
Audit committees are encouraged to discuss fraud risk factors and relevant laws and regulations with their auditors.
The report is available at:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
