APB issues a revision of ISA (UK and Ireland) 700 'The Auditor's Report on Financial Statements'

News types: Guidance, Publications

Published: 15 February 2011

APB PN 141

The Auditing Practices Board (APB) of the FRC today issues revisions of:

  • ISA (UK and Ireland) 700 “The Auditor’s Report on Financial Statements”; and

  • Bulletin 2010/2 “Compendium of Illustrative Auditor’s Reports on United Kingdom Private Sector Financial Statements for periods ended on or after 15 December 2010”.

The revision of ISA (UK and Ireland) 700 which is effective for audits of United Kingdom entities for periods ending on or after 23 March 2011: Amends the short form description of the scope of an audit to refer to the auditor’s responsibility under ISAs (UK and Ireland) to read all the financial and non-financial information in the annual report to identify material inconsistencies with the financial statements.

The description of the scope of an audit maintained on APB’s website (which an auditor may choose to refer to in an auditor’s report) has been revised to be a generic description which can be applied to any entity.

Richard Fleck, APB Chairman said:

“Investors and other users of annual reports regard the auditor’s involvement with the financial and narrative “other information” included with the financial statements to be of increasing importance. The APB, therefore, has amended the description of the auditor’s responsibility included in the auditor’s report to refer to the auditor’s obligation to read such other information with a view to ensuring that there are no material misstatements or inconsistencies between it and the financial statements”.


As contemplated when it was originally issued the revision of Bulletin 2010/2 amends each of the illustrative auditor’s reports to reflect the change to the short form description of the scope of an audit.

Both the revised ISA (UK and Ireland) and Bulletin may be downloaded free of charge from the Publications section of this website.

Notes to Editors

  1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.

  2. The APB is committed to leading the development of auditing practice in the United Kingdom and the Republic of Ireland so as to:

    • establish high standards of auditing;

    • meet the developing needs of users of financial information; and

    • ensure public confidence in the auditing process.

  3. In the Republic of Ireland the revised ISA (UK and Ireland) 700 and also ISAs (UK and Ireland) 705 and 706 are not applicable. The version of ISA (UK and Ireland) 700 that was effective for periods commencing on or after 15 December 2004 remains in effect with respect to audits of Irish entities.

Document created under a former FRC operating body.

Explore the topics