News

The Financial Reporting Council has revised three UK auditing standards to make auditors’ reports shorter, clearer and more informative for investors.

The changes to ISA (UK) 700, 701 and 720 are intended to reduce boilerplate language and focus reporting on matters specific to each company and audit. Key Audit Matters should become more targeted, helping readers identify significant judgements, complexities and risks.

For companies applying the UK Corporate Governance Code, auditors will also explain how internal controls affected the audit and disclose any very serious control deficiencies identified. The changes complement Provision 29, which requires boards to report on the effectiveness of their material internal controls.

The revised standards take effect from 15 December 2026, with most companies expected to report under them for the first time in 2028.

For corporate reporting teams, the reforms reinforce the importance of clear, company-specific disclosures and robust internal controls.

Read our full article to explore what the changes could mean for companies, investors and transaction professionals.