The FRC’s changes reflect revisions made by the International Auditing and Assurance Standards Board (IAASB), and are designed to establish a “more robust and consistent risk identification and assessment”.
It said a more “robust” risk assessment process “enhances” the basis upon which auditors design and perform audit procedures that are responsive to the risks of material misstatement.
The FRC added it has “strongly supported” the IAASB’s work.
A statement by the FRC read: “When finalised, the revised UK standard is proposed to be effective, in line with the international standard, for audits of financial statements for periods beginning on or after 15 December 2021. Early adoption of the revised standard will be permitted and is encouraged.
“In issuing the revised ISA (UK) 315 for consultation, the FRC is not proposing to add any new UK requirements, given that the IAASB has sufficiently addressed matters raised by the FRC in its comment letter on the IAASB’s Exposure Draft.”
The consultation will run until 4 April 2020.