In light of the responses to the Discussion Paper, the APB has decided to undertake work in the following areas:

• Ensuring that there is a consistent understanding of the nature of professional scepticism and its role in the conduct of an audit.

• Reviewing ISAS (UK & I) for possible ambiguities in relation to the nature and importance of professional scepticism, and proposing such changes as may be needed to make sure the position is clear.

• Reviewing ISQC (UK & I) 1 to ensure that it has sufficient requirements and guidance relating to the need for firms to have appropriate policies and procedures for promoting the competencies that underlie professional scepticism.

• Considering how the application of scepticism can be made more transparent.

• Considering, with other parts of the FRC, whether there is a need for guidance on the approach to be taken by auditors when considering the presentation in the financial statements of matters that have been the subject of significant challenge by the auditors.

Press release