Understanding the Impact of Changes to the ISA 240 Standard on FIRE Practitioners
Professionals from BRG, Kingsley Napley, and the Financial Reporting Council (FRC) discussed impending changes to ISA (UK) 240, “The auditor’s responsibilities in relation to fraud in an audit of financial statements,” including the drivers behind revisions to the standard and the potential impacts for FIRE (Fraud, Insolvency, Recovery, and Enforcement) practitioners.
Attendees received insights from the FRC alongside the legal and consulting sectors, including:
- a summary of the proposed changes to the standard, the motivation for the changes, and the intended impact
- consideration of practical changes to the conduct of audits following the changes, including the need to bring in forensic experts
- how the changes might impact the regulators’ appetite for investigating breaches, and how firms can protect themselves against this
- practical insights and experiences of working with regulators, enforcement agencies, and corporate clients in cases involving accounting fraud