APB consults on changes to internal audit standards

THE FRC’S Auditing Practices Board has issued a consultation on revisions to auditing standards addressing the use of internal audit.

The proposed changes will bring UK and Ireland standards into line with corresponding standards issued by the International Auditing and Assurance Standards Board (IAASB).

The changes are designed to improve auditors’ 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.

Nick Land (pictured), a director of the FRC and chairman of the APB, said: “In appropriate circumstances, external auditors may be able to improve the efficiency or effectiveness of the audit of financial statements by using the work of an internal audit function as part of the evidence obtained.”

The consultation process runs until 31 August 2012.

Related reading