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The Actuary The magazine of the Institute & Faculty of Actuaries

New ethical standards for auditors

The Auditing Practices Board (APB) published on 17 December final versions of new ethical standards for auditors. Actuaries may wish to scrutinise these in that they may signal the standards which would apply to actuaries and perhaps to actuarial firms in the ‘independent oversight’ context apparently favoured by the Morris Review.

The new standards were cautiously welcomed by accountancy bodies, although there was clearly considerable anxiety surrounding their development. A particular difficulty seemed to be the reconciliation of the need for confidence in quoted company audits with the need for cost-efficient certification of accounts for small and medium-sized enterprises. The APB has sought to achieve this by allowing an ‘audit lite’ approach for the latter.