The European Commission has mandated EFRAG to simplify the ESRS. Read Accountancy Europe’s statement.
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Wim Bartels, Chair of Accountancy Europe’s Sustainability Policy Group and member of EFRAG’s Sustainability Reporting Board, spoke on behalf of Accountancy Europe at the European Parliament (EP) hearing on sustainability reporting obligations on 13 May.
Bartels shared early insights from the first implementation year of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). He noted that while the ESRS provide an essential framework, their complexity and granularity have posed challenges for preparers and auditors alike. Simplifications proposed by the European Commission (EC) were welcomed, particularly considering their relevance to assurance work.
Preliminary analysis of 52 CSRD-based reports showed few qualified conclusions, mainly related to Scope 3 data, reliance on third-party sources, and EU Taxonomy issues. However, half of the reports included ‘emphasis of matter’ paragraphs, reflecting the need for ongoing improvements in sustainability data quality and transparency.
He emphasised the need for a more harmonised EU approach to sustainability assurance and expressed support for the EC’s initiative to issue targeted guidance. In the long term, he advocated for a dedicated EU assurance standard, with IAASB’s ISSA 5000 as a possible foundation.
Bartels concluded by stressing the importance of a level playing field for all assurance providers to maintain trust and avoid greenwashing.
The Council has formally approved the ‘Omnibus’ or ‘stop-the-clock’ directive, following its adoption by the European Parliament. Published in the Official Journal of the EU, the directive entered into force on 17 April 2025.
It postpones the application of the CSRD requirements by two years for companies initially scheduled to report in 2026 and 2027. This includes a deferral of the requirement for limited assurance over sustainability information.
Member States must transpose the directive into national law by 31 December 2025.
EFRAG has launched a public consultation on proposed revisions to ESRS Set 1, the core sustainability reporting standards under the CSRD. This consultation invites stakeholders, including assurance providers, to comment on how the standards can be clarified and made more operational. Given that ESRS disclosures will be subject to mandatory assurance, any changes could significantly impact audit scope and procedures.
Accountancy Europe has already provided its response, now available on our website.
The EP Plenary adopted the final text of the annual EU competition policy report on 8 May. The report notably expresses concern over the public interest entities’ (PIE) audit market concentration and invites the EC to present an impact assessment with options to address the issue. It also calls on the EC to “carefully assess” public tenders from “audit market participants”.
The text passed with 358 votes in favour, 124 votes against, and 79 abstentions. MEP Lara Wolters (S&D/Netherlands) led the EP’s work on the file. This non-legislative own-initiative report does not oblige the EC to take any action.
The International Auditing and Assurance Standards Board (IAASB) has released proposed narrow-scope amendments to several standards in response to IESBA’s project on the use of external experts. The changes aim to align IAASB standards with IESBA’s revised ethical guidance, enhancing clarity and consistency in how auditors assess and rely on external expertise.
The target amendments focus on:
The deadline to respond to IAASB on the proposed amendments is 31 July 2025.
IAASB announced the withdrawal of ISAE 3410, the standard for assurance engagements on greenhouse gas (GHG) statements. This decision follows the approval of ISSA 5000, the new International Standard on Sustainability Assurance, which offers a broader framework for all types of sustainability information, including GHG emissions. ISAE 3410 will be withdrawn effective for reporting periods beginning on or after 15 December 2026, aligning with the effective date of ISSA 5000.
The US Public Company Accounting Oversight Board (PCAOB) has released new downloadable datasets containing key findings from its audit firm inspection reports. The datasets aim to increase transparency and support analysis of audit quality trends across firms and years. They include information on inspection outcomes, identified deficiencies, and summary data at the firm level. The PCAOB notes that the datasets will be updated annually and are now available on its website.
Chartered Accountants Worldwide (CAW), in collaboration with Ipsos, has published a new report exploring the impact of AI on the accountancy profession. The study highlights growing adoption of AI tools across finance and audit functions, with professionals optimistic about efficiency gains but cautious about risks. Key findings show accountants value AI for data analysis and fraud detection yet stress the continued need for professional judgment and ethical oversight. As AI becomes more embedded in practice, the report calls for upskilling, clear governance, and balanced integration to ensure trust and quality remain at the core of the profession.
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