ACCA AAA
Additional UK requirements (UK Syllabus only)
Your chapter at a glance. Open any section, or keep the whole map in view.
FRC ethics and separate UK reporting duties
UK requirements ethical limits and separate reporting
UK audits
- May be more restrictive than IESBA/ACCA Codes
- A prohibited interest/service cannot be cured by safeguards
PIE non-audit services
- First establish whether service is permitted
- Restrictions include tax, valuation, internal audit, IT
- Also legal, recruitment and remuneration advice
- Separate teams cannot permit a prohibited service
Fee cap
- Relevant services ≤70% of average audit fees
- Use preceding three consecutive financial years
- Example: £600,000 average gives £420,000 cap
Other threats
- Fee dependency: apply relevant UK threshold/actions
- PIE engagement partner normally limited to five years
UK company opinion ordinarily covers
- Financial statements give a true and fair view
- Proper preparation under reporting framework
- Preparation under Companies Act 2006
Keep duties separate
- UK legal/Code reports are additional sections
- Modify opinion for material financial statement misstatement
- Or material inability to obtain sufficient evidence
Strategic and directors’ reports
- Report consistency with financial statements
- Report compliance with legal requirements
- Report material misstatement identified from audit
- If financial statements correct, opinion stays unmodified
Examples
- Inadequate records or branch returns
- Financial statements disagree with records/returns
- Required directors’ remuneration disclosures missing
- Necessary information and explanations not received
Evaluate opinion separately
- Missing records may cause evidence limitation
- Missing disclosure may materially misstate statements
- Withheld information may require qualification/disclaimer
Key distinction
- Reporting by exception is not itself modified opinion
- If no exception, state nothing to report
Relevant annual report statements
- Going concern and longer-term viability
- Principal/emerging risks and internal control
- Fair, balanced and understandable report
- Audit committee work
Auditor reports
- Material points on going concern/viability statements
- Specified Code disclosures consistent with audit knowledge
- No separate opinion on viability/control effectiveness
Reporting sequence
- Assess financial statement misstatement and evidence
- Decide opinion effect, then separate UK duty
- Identify the affected auditor’s report section
Want it on paper? Download the PDF, or print this page.