Brexit Impact on Audit Profession

The assignment explores the multifaceted effects of Brexit on the audit profession. It delves into potential regulatory shifts, the perspectives and anxieties of audit professionals regarding job security and career growth, and examines the possible long-term consequences for both the UK and Ireland's audit landscapes. The analysis considers various factors like international auditing standards, relocation concerns, and emerging economic opportunities in developing nations.

Audit & Assurance

Table of Contents
Introduction......................................................................................................................................3
Backgrounds....................................................................................................................................3
Significant Influences......................................................................................................................3
Audit Reform - Impact.....................................................................................................................4
Auditing...........................................................................................................................................4
Internal audit and Brexit..................................................................................................................5
How Brexit Affect Auditors............................................................................................................5
Issues................................................................................................................................................6
Third Audit Professionals................................................................................................................6
References:......................................................................................................................................8

INTRODUCTION
United Kingdom being one of the crucial members of European Union will be adversely
affected by Brexit as it will have vital impact on trade volumes, investment opportunities
reduced with time therefore leading to fall in value of Great Britain Pound(GBP) at least 10%
below as on before the news and consequently decline speculation and exchange markets.
However quantification of overall impact is difficult to analyse as it would impact the economy
through various channels. UK would now be liberal and free to enter into agreements beneficial
for the domestic territory and preferences rather than considering EU as a whole. EU may have
both positive as well as negative impacts of Brexit as it would lead to political integration on the
contrary causing loss of substantial part of tangible and intangible assets. Anticipation of impact
on exact terms is still difficult however it can be estimated on relative terms keeping in mind
various other factors of macroeconomics.
BACKGROUNDS
Economy across the globe is affected by Brexit but major economies playing the lead role
are EU and Britain. Quantitative impact can be easily derived by exchange variation. There
would be significant impact on spending patterns of household as the imported goods will
become more expensive thereby causing rise in prices of food, clothing and household articles.
The UK would have to enter into revised negotiations such as 4 Global Counsel 2015 Executive
therefore reducing the bargaining power of UK. EU will have limitations based on the
preferences of US and Japan and some rising nations therefore standing on the lower platform
than competitors. With the help of more dynamic monetary and exchange cures EU can
efficiently utilize the resources without UK. The exact impact of Brexit on overall
macroeconomics of nation is nearly impossible as it is an outcome of several factors and
conditions depending upon past performance and future outcomes. However it can be said that
UK will be negatively impacted and short run leaving minor impact on EU .Interpretation by
various economist vary on the particular subject thereby causing ambiguity in clear outcome.
SIGNIFICANT INFLUENCES
There are certain channels which are not captured by macro-economic models, instability
and liquidity are part of them Submission vulnerability is a major concern for many of the UK
organisations. However there are certain terms and conditions depending upon which the
negotiations will be entered into and considered while exiting the EU.

AUDIT REFORM - IMPACT
The key issues of the Audit Reform affecting the statutory audit and the necessities for
open intrigue substances (PIEs) are as per the following:
 Mandatory audit firm revolution for PIEs
 New prerequisites for audit boards (or their identical) identifying with their oversight of
the execution of the audit
 New prerequisites with respect to reporting by the statutory auditor
 Explanation of the meaning of Public Interest Entities (PIEs)
AUDITING
Finally, for the sake of audit council authority has requirement of dealing with the
rearrangement for the outside examiner. Further, the committee needs to favor passable non-
audit administrations that is given by the evaluator to the business unit across the globe. Further,
it is essential for council to change the arrangements. It has been analysed that the division
within the organization must be independent and the division of the work should be effectively
carried out to create significant result. The ability of managing effective accountability and book
keeping also is significant in the given aspect. It can be analysed that the demanded aspects will
remain set up as Britain will not be the part of EU. Thus the major two evaluations made by the
UK council are that those associated with UK organizations will change through EU audit
standards. The new necessities and arrangements with be made available and also that UK
boards of trustees will continue playing a major part as organizations in order to effectively deal
with the dangers associated with the developing changes that will be made by Brexit within the
market.
INTERNAL AUDIT AND BREXIT
It has been evaluated that three out of five associations has made significant
arrangements prior to submission however as per the current analysis most associations are
making efforts to work in Brexit. More than half of the associations are required to provide
knowledge regarding dangers and hazard control regarding brexit aspects however few are being
focused on evaluating the associated danger with the arrangements stated. The evaluated results
reflects Brexit timetable to be widely questionable hazy. Post Britain state is highly confusing

and being questioned within the market. The major arrangements are thus in the initial stage
only. The need of refined as the more extended term prospects is needed in order to develop a
well-defined evaluation of the state mentioned in the country and associated regions as well.
Inspectors for evaluating danger associated closely need to analyse and ascertain the situation
regarding Brexit. However a rigid audit is the expected reaction while planning the actual
situation in the mentioned scenario.
Meanwhile, it has been evaluated that many internal evaluatorsare looking forward to provide
and effective guidance towards Brexit which decelops an emplowering impact on it.
be that as it may, it is empowering that numerous inward evaluators are as of now occupied with
giving forward-looking guidance. As a trusted counsel, inner audit has a key part to play in
supporting associations to explore Brexit dangers. The vulnerability of the current circumstance
makes new open doors for the calling to exhibit its additional esteem. In the midst of melancholy
signs that Brexit has hosed bosses' more extensive enlisting goals, one late report recommended
that interest for consistence staff has expanded.
HOW BREXIT AFFECT AUDITORS
It is seen that the audit employments are concerned to the extent that BREXIT is able to
flag open door for examiners as a part autonomous controllers. This also includes FRC
(Financial Reporting Council) that motivate the business outfitting for distributing the income of
final quarter and entire year so as to incorporate cost of Brexit for monetary proclamations.
Further, executives that belongs to blue-chip firms in FTSE 100 index are supposed to distribute
the outcomes. Further, it should reveal the danger or risk involved for shareholders and other
financial specialists with introduction of Brexit. This in turn indicates that an ideal opportunity is
available for resolving all book-keeping issues together. In present scenario, vulnerability and
hazard is one of the major issue. The votes always split of fact if the UK should be a part of
European Union or not. This in drives the group for emphasizing the significance of the effect of
Brexit on cost of business operations.
ISSUES
Issues are present on both the sides of outskirt as well as various book keeping and
auditing perspectives in UK and EU. General Population is facing a typical problem of
vulnerability as a part and parcel of Brexit.

FRC will form the basis of moral measures and auditing standards for Ireland.
Considering moral necessities concern regarding UK's 'gold plating' done on perquisites offered
by EU were communicated and inspections with respect to audit reform bundle and changes to
moral gauges was carried after a varied and critical discussion on the FRC venture. Audit firms
working within both the geographical boundaries will have additional concerns regarding
separate arrangements in both the territories. Ignoring the Ireland's economic needs considering
the indication that whether the Ireland will be allowed to follow the guidelines issued or
practiced by nations outside the pursuit and precincts of EU. The utilization of the International
Standards of Auditing (ISAs), issued and published by the International Audit and Assurance
Standards Board (IAASB) should be considered only after giving due diligence to elective
methodologies.
THIRD AUDIT PROFESSIONALS
It can be stated that most of the working professional which are associated with areas
such as auditing believes that the decision regarding UK’s exist from EU will negatively affect
their vocational. Apart from this, they also feel that it will affect their employment level.
According to the survey conducted, 80% of the working professional feels that the exit from EU
will help in their future growth and development. However, at the same time some of the
individuals were not clear with the fact that whether the decision is going to affect them
positively or negative. This indicates the fact that some people are having mixed reviews
regarding the same. The experts also feel that in short run the decision of getting exit from EU
will affect in negative sense but in the long run it will be beneficial for overall growth and
development of the country.
It is been said by Wright that when Gender has been taken at free consent, the answers to
principle concern is gathered by all accounts that have professional stability. Further, limited
availability of options to work abroad and job misfortune are factors that relate to cost reduction
activities.
A spacious number of persons brought forward their worries that their organization
would shift their office to the country of Europe. Further, no one is expected to make this move
in recent duration.

Nevertheless, there are list of factors that favor origination of Brexit into European
Union. It can be suggested by fact that few of people are affected by its expected impact after
implementation.
Wright also added that the positive factors of Brexit may result into creation of grounded
associations in developing nations of China and India. Further, Australia and New Zealand can
also be part of certain association in district. The move is going to bring revolutions into
employment of the districts.

REFERENCES
 Internal audit and Brexit. Available at:
http://auditandrisk.org.uk/features/internal-audit-and-brexit[Accessed November 28,
2016]
 Impact of Brexit. Available at:
https://www.global-counsel.co.uk/sites/default/files/special-reports/downloads/Global
%20Counsel_Impact_of_Brexit.pdf[Accessed November 28, 2016]
 Brexit Strategy. Available at:
http://auditandrisk.org.uk/features/brexit-strategy[Accessed November 28, 2016]
 Careers in Audit. Available at:
www.careersinaudit.com[Accessed November 28, 2016]
 Third Audit Professionals Impact Brexit. Available at:
https://www.cchdaily.co.uk/third-audit-professionals-fear-impact-brexit[Accessed
November 28, 2016]
 Brexit. Available at:
http://www.accountancyireland.ie/en/AI_RSS_Update/Brexit/[Accessed November 28,
2016]
 How Brexit Affect Auditors. Available at:
http://www.careersinaudit.com/article/how-will-brexit-affect-auditors-/[Accessed
November 28, 2016]