PracticeAuditAPB offers new guidance on financial instruments

APB offers new guidance on financial instruments

New guidelines help auditors to find values in stagnant markets

New audit rules have been released on the valuation of controversial
financial instruments which played a central role in the financial crisis and
have since added fire to debates surrounding fair value accounting.

The Auditing Practices Board (APB) said it is trying to inject some clarity
into the audit of complex financial instruments which it describes as “a
challenge”, made difficult by recent stagnant economic conditions.

Richard Fleck, chairman of the APB, said the new guidelines would make it
easier to audit financial instruments when markets make valuations difficult to
come to.

“The audit of some financial instruments can be challenging, especially when
market conditions make fair values difficult to estimate,” he said

“The APB hopes that the updated (audit rules), which contains much new
guidance, will assist auditors in addressing current considerations that are
relevant in the audit of financial statements of entities that use complex
financial instruments.”

Read the full APB statement:
APB
issues updated Interim Guidance on Auditing Complex Financial Instruments

Related Articles

MoD accounts qualified for seventh time in a row as leasing issues remain

Accounting Standards MoD accounts qualified for seventh time in a row as leasing issues remain

1y Kevin Reed, Writer
Error in Department for Education’s financial statements ‘material and pervasive’

Accounting Standards Error in Department for Education’s financial statements ‘material and pervasive’

2y Calum Fuller, Reporter
Scottish Police Authority audit quality panned

Audit Scottish Police Authority audit quality panned

3y Chris Warmoll, Writer
Accounts qualified for 1,000 ‘small bodies', reports Audit Commission

Audit Accounts qualified for 1,000 ‘small bodies', reports Audit Commission

3y Chris Warmoll, Writer
Argument erupts in parliament committee over draft audit bill

Audit Argument erupts in parliament committee over draft audit bill

5y Rachael Singh, Writer
Government wrote off £10.9bn in unpaid tax in 2010

Audit Government wrote off £10.9bn in unpaid tax in 2010

6y Richard Crump, Writer
Government pension scheme qualified by the NAO

Audit Government pension scheme qualified by the NAO

6y Kevin Reed, Writer
No audit opinion for missing court accounts

Audit No audit opinion for missing court accounts

6y Rose Orlik