It proposes to withdraw Practice Note 16 Bank Reports for Audit Purposes in the United Kingdom, and provide additional requirements to ISA (UK) 330 – The Auditor’s Responses to Assessed Risks and ISA (UK) 505 – ExternalConfirmations.
It proposes that the changes would apply to the audit of financial periods beginning on or after 15 December 2017. The following two clauses would be inserted into the ISAs:
pro-forma templates to obtain bank confirmations in the United Kingdom which have been agreed with the British Bankers’ Association on behalf of the industry
in the UK, depending on the auditor’s risk assessment, the auditor considers whether confirmation is needed in relation to additional information such as trade finance transactions and balances or information about guarantees and other third party securities, in addition to the confirmation of balances and other banking arrangements usually provided in such a request.