Auditing in 2021: ISA’s (UK) 540, 570 and 700

Three revised auditing standards will affect all audit clients during 2021. Typically affecting years ending 31 December 2020 onward, they will fundamentally impact the conduct of, and reporting on, an audit. For the first time the audit firm will be required to specifically explain in the audit report how the audit approach was capable of detecting irregularity including fraud. These three revised Standards are:

  • ISA (UK) 540: Auditing Accounting Estimates and Related Disclosures;
  • ISA (UK) 570: Going Concern; and
  • ISA (UK) 700: Forming an Opinion and Reporting on Financial Statements.

We expect adoption of these standards to be challenging for all audit firms and for this to be an area of intense interest from regulators during audit monitoring visits.

HAT have prepared a 2-hour CPD course covering the new Standards.