On 27 May 2021, the Financial Reporting Council (FRC) published a revised version of its auditing standard on the responsibilities of auditors in relation to fraud.

The revisions set out more stringent requirements to identify and assess the risk of material misstatement because of fraud and the procedures to respond to those risks. Such amendments include a new paragraph 13-1 which prescribes that “the auditor shall remain alert for conditions that indicate a record or document may not be authentic”.

The new standards additionally require firms to consider bringing in specialist practitioners to conduct further investigations when they identify financial misstatements resulting from fraud or suspected fraud.

The revised UK standard is effective for audits of periods beginning on or after 15 December 2021 with early adoption permitted.