Access Accountancy Europe’s publications on the Omnibus proposal, including views on CSRD scope reduction and sustainability assurance
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On 23 June, the Council agreed its position on revising the Corporate Sustainability Reporting Directive (CSRD) to reduce burdens and boost EU competitiveness.
The new scope limits CSRD obligations to companies with over 1,000 employees and €450 million turnover, excluding listed SMEs. Member States may also exempt companies with 500–1,000 employees until end-2026. For value chain partners with under 1,000 employees, sustainability information can only be requested if defined in a voluntary reporting standard.
The reduced scope is expected to lower the number of companies subject to mandatory sustainability assurance, impacting audit firms’ related workloads.
Accountancy Europe expressed its support for maintaining a principles-based approach in the International Code of Ethics for Professional Accountants rather than introducing specific rules for these sectors.
It warned that sector-specific requirements could create complexity and inconsistency globally. Instead, it suggested that practical challenges faced by auditors in collective investment vehicles (CIVs) and pension funds should be addressed through enhanced guidance and training.
The International Auditing and Assurance Standards Board (IAASB) released a revised version of ISA 240, addressing the auditor’s responsibilities relating to fraud in financial statement audits. The update aims to enhance audit quality and public trust through clearer requirements and guidance.
Key enhancements include:
The revised standard is effective for audits of periods beginning on or after 15 December 2026.
ACCA and Chartered Accountants Australia and New Zealand (ANZ) have jointly issued guidance on applying materiality in sustainability assurance engagements under ISSA 5000.
The paper explains how practitioners should assess both qualitative and quantitative aspects of materiality and how to consider the entity’s own materiality determinations. It also addresses challenges such as aggregating sustainability topics and ensuring consistent professional judgment. ISSA 5000 is positioned as a global baseline for sustainability assurance, with implementation expected for periods beginning on or after 15 December 2026.
The public company accounting oversight board (PCAOB) imposed fines on the Dutch affiliates of Deloitte and PwC ($3 million each) and EY ($2.5 million) for identified shortcomings in internal training compliance on 25 June.
The firms self-reported that personnel shared or received answers on mandatory internal tests. In parallel, the Dutch authority for the financial markets (AFM) placed the firms under intensified supervision to monitor improvements in quality control systems. Both regulators emphasised the importance of training integrity and noted the firms’ cooperation.
This newly proposed framework would introduce a voluntary registration system overseen by the audit, reporting and governance authority (ARGA), open to both auditors and non-auditors.
Registered providers would be authorised to assure sustainability-related disclosures made under frameworks such as UK SRS, ESRS, TCFD, and ISSB. The proposed regime would align with the UK equivalent of ISSA 5000 standards. ARGA would be responsible for registration, oversight, and enforcement.
The consultation invites views on the design of the regime and runs until 17 September 2025.
The UK government’s June 2025 Industrial Strategy supports the professional and business services (PBS) sector, including audit and assurance.
It promotes technology adoption and workforce development, aiming to build a skilled, diverse audit profession. The strategy highlights global opportunities through mutual recognition of professional qualifications, which benefits auditors working internationally. It also includes regulatory reforms, such as updates to Money Laundering Regulations, impacting audit compliance. These measures aim to strengthen the competitiveness and resilience of the audit sector as part of the wider PBS industry.
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