Audit Policy

 Cannot read this email? Open in your browser.October 2022 

Audit Policy Update



Publication: Public Audit Oversight


We highlight how 30 EU countries carried out public audit oversight following the 2014 EU audit legislation.


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  • The outcome of the CEAOB survey on materiality  
  • IOSCO encourages standard-setters’ work on assurance of sustainabilityrelated corporate reporting 
  • The IAASB consults on revised audit evidence standard


EU developments


The outcome of the CEAOB survey on materiality

The Committee of European Auditing Oversight Bodies (CEAOB) looked into the concept of materiality in its survey. CEAOB investigated how the Big 4 firms apply the concept in practice on a sample of Public Interest Entities (PIEs) audits and how audit committees perceive materiality in European Economic Area (EEA) countries.  

The survey noted similarities between audit firms and audit committees but also discrepancies and inconsistencies. It includes these recommendations: 

  • standard setters may enhance the requirements on audit materiality while recognising the fundamental role of judgment in assessing audit materiality 
  • auditors need to stand back and may reconsider certain aspects of their practice when assessing audit materiality 
  • audit committees need to enhance dialogue with auditors on materiality matters 

Read more 

European Parliament publishes draft report on Pandora Papers

The draft report is the Parliament’s follow-up to the Pandora Papers leaks that appeared in October 2021. Niels Fuglsang (S&D/Denmark), the Member of the European Parliament (MEP), prepared the draft. Alongside with tax-related recommendations, it calls on the European Commission (EC) “to propose measures to clearly separate accountancy firms from financial or tax service providers as well as all advisory services”. 

The file is a non-legislative own-initiative report. The Parliament’s Committee on Economic and Monetary Affairs (ECON) is scheduled to vote on it on 31 January 2023.  

Read more 


International developments


IOSCO encourages standard-setters’ work on assurance of sustainabilityrelated corporate reporting

The Board of the International Organization of Securities Commissions (IOSCO) welcomes the plans of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) in this context.  

The plans include working towards high-quality, global assurance and ethics (including independence) standards. These will be profession-agnostic and can support limited, and ultimately, reasonable assurance of sustainability-related information. 

IAASB and IESBA acknowledge the growing trend of stakeholders seeking assurance of sustainability-related information. Responding to market demands with robust standards applicable to all sustainability assurance providers is vital, as they show with this work. 

Read more 

2023 appointments and re-appointments to the IESBA and the IAASB

The Public Interest Oversight Board (PIOB) has approved the 2023 appointments and re-appointments to the IESBA and IAASB. This is the final step in its newly established nominations process carried out with the Standard-setting Boards Nomination Committee (SSB NomCo). 

Read more 

The IAASB consults on revised audit evidence standard

The IAASB issued a public consultation on proposed changes to the International Standard on Auditing (ISA) 500, Audit Evidence. All stakeholders are invited to comment on the exposure draft by 24 April 2023. 

Read more 


News in brief

Financial Times
EY Israel rejects break-up plan pushed by global bosses
Accountancy Vandaag
PIA Group is moving to the Netherlands and entering into a strategic partnership with Brouwers Accountants (in Dutch)
Financial Times
KPMG flunks US overseas audit inspections twice as often as rivals
Financial Times
Auditors fall down on climate risk as corporate polluters fail basic tests, study shows
Financial Times
Global accounting firms warned over use of local affiliates
How do we audit cryptocurrency?
Financial Times
Accountants work to shed ‘boring’ tag amid hiring crisis
Hertie School
Give us the tools and we’ll finish the job: How Europe can fix the broken audit market
Financial Times
EY’s break-up plan raises fears over audit business

This curated content was brought to you by Júlia Bodnárová, Accountancy Europe Senior Advisor since 2017. You can send her tips by email and connect with her on LinkedIn.

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