Audit Policy Update

• Upcoming EC consultation will ask for input on joint audit*
• IFAC urges stakeholders to prepare now for global sustainability standards
• Accountancy Europe organises second ESEF in Practice webinar on 15 November
• Accountancy Europe and EFAA organise joint webinar on the IAASB’s proposed auditing standard for LCEs on 19 November

ESMA publishes its Work Programme 2022

The European Securities and Markets Authority (ESMA) published its 2022 work programme. The authority will undertake ‘single rulebook’ work on audit by providing input to relevant International Standards on Auditing (ISAs), participating in the Committee of European Auditing Oversight Bodies (CEAOB) and liaising with representatives of European audit oversight bodies to improve cooperation between audit and accounting supervision.

ESMA will also conduct a fast-track peer review on the application of the guidelines on the enforcement of financial information by the German Federal Financial Supervisory Authority (BAFIN) and Financial Reporting Enforcement Panel (FREP), in the Wirecard context. ESMA may contribute to future European Commission’s (EC) initiatives around Wirecard, especially where those consist of amendments to the EU Transparency Directive. Read more

Upcoming EC consultation will ask for input on joint audit*

The EC replied to another Member of the European Parliament (MEP) question on audit. The question enquired, among other matters related to Wirecard, about the EC’s plans for possible joint audits.

In her reply, Commissioner McGuinness confirms that the EC is “carefully considering” the potential benefits of joint audits and will consult stakeholders on this matter in the upcoming public consultation. Read the full EC response

As informed in our September Audit Update, the EC published the timeline for corporate reporting ecosystem revamp as follows:

• in the next weeks: launch of a Roadmap indicating EC’s objectives and policy options under consideration. Stakeholders will be able to give feedback on these Roadmaps, with a usually one month-long feedback period
• Q4 2021: launch of the public consultation. This is expected to happen within a month
• Q4 2022: legislative proposal

Read more

*Please note that the title of this news item has been corrected to accurately reflect the Commission’s action.

IFAC urges stakeholders to prepare now for global sustainability standards

The International Federation of Accountants (IFAC) published a framework for implementing global sustainability standards at the local level, focusing on the building blocks approach published in May 2021.

This framework examines how existing mechanisms for adopting International Financial Reporting Standards (IFRS) used in financial reporting may be appropriate or adapted for sustainability-related reporting. Alternatively, a new mechanism may be required.

IFAC urges its member organisations to engage now with local policy-makers on what mechanisms can be used to transition forthcoming global standards into local standards.

Linked with the above, Members of the International Auditing and Assurance Standards Board (IAASB) Consultative Advisory Group (CAG) discussed the assurance angle at their September meeting. This included the development of sustainability assurance standards, their potential scope and the role of the IAASB.

Accountancy Europe organises second ESEF in Practice webinar on 15 November

Join Accountancy Europe to investigate success stories with implementing the European Single Electronic Format (ESEF) and particularly on auditing ESEF.

In our first webinar in July, the experts shared lessons learnt from the first-year implementation in Germany and explained ongoing preparatory work in France, Spain and the Netherlands.

On 15 November, from 15:30 to 17:00, we will hear further insights about ESEF implementation and assurance in other jurisdictions. Register here

Accountancy Europe and EFAA organise joint webinar on the IAASB’s proposed auditing standard for LCEs on 19 November

With the European Federation of Accountants and Auditors for SMEs (EFAA), we will co-host the webinar “A Global Solution for Auditing Less Complex Entities: How to Make It Work?” about the IAASB’s proposed auditing standard for LCEs. The event will take place on 19 November, from 15:00 to 17:00.

The IAASB’s LCE Task Force Chair will talk about the objectives and the details of the proposed standard; then, speakers will present perspectives from a practitioner’s, user’s and regulator’s point of view.

Participants will have the opportunity to pose questions and provide comments. Register here