The Auditing Practices Board (APB) of the FRC today issues a revision of Practice Note 19, 'The audit of banks and building societies in the United Kingdom'. An exposure draft of the revised Practice Note was issued in July 2010 for public comment.

The revised Practice Note updates the guidance for auditors to reflect the issuance of the new ISAs (UK and Ireland) which apply to audits of financial statements for periods ending on or after 15 December 2010 and for changes in legislation. In addition the APB has also revised and enhanced the guidance in a number of areas, including in relation to the audit of accounting estimates and impairment provisions and related disclosures. The APB has also added guidance on bilateral and other periodic meetings between auditors and the FSA.

Richard Fleck, APB Chairman, said:

“In addition to updating the Practice Note for the new auditing standards, the APB also considered this an opportune time to enhance the guidance in relation to areas that were identified as being of particular interest in the credit crisis. The APB intends to update the references to the FSA within Practice Note 19 at an appropriate time following the future restructuring of the FSA.”

A copy of the Practice Note may be downloaded from the publications section of the APB’s web site at:

http://www.frc.org.uk/apb/publications/pub2554.html. Printed copies at a cost of £15.00, are available from: FRC Publications, 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Telephone 020 8247 1264. E-mail: cch@wolterskluwer.co.uk. Website: www.frcpublications.com.