Consultation response

11 June 2020

Public letter to the IAASB: progress on draft standard for auditing less-complex entities

Accountancy Europe calls on the IAASB to achieve clear progress towards a draft standard for auditing less-complex entities (LCEs)/ small and medium-sized enterprises (SMEs) by end 2020. 

This is especially urgent as:

  • we have observed increasing audit thresholds in Europe over the past 15 years
  • countries have started developing their own LCE audit standards
  • the coronacrisis has put LCEs/SMEs at heightened going concern risks and auditors need fitforpurpose standards to be able to bring credibility to suppliers or lenders using their accounts

We believe in using the existing ISA framework to draft a standard that is no longer too complex for LCEs’ needs as the current ISAs are. This will ensure consistent audit approaches globally. 

Our response (Sept 2019) to the relevant IAASB’s consultation already highlighted the following 3 priorities for the IAASB: 

  1. develop a separate standard for LCE audits based on the ISAs
  2. use the separate standard as an opportunity to revise the ISAs as a whole with a think simple first/building blocks approach
  3. anticipate, and plan converging exercises 1 and 2

This followed on our call for action (May 2018) for the IAASB to explore the best solution.

An independent task force already explored such options in our Cogito publication Simplifying auditing standards for small or non-complex entities (April 2018).

Related content

PublicationFAQs: all you need to know about the Corporate Sustainability Reporting Directive

23 November 2022

EventSMEs’ sustainable transition: how to support it?

15 November 2022

PublicationSME risk management – cyber risks & resilience checklist

10 November 2022

NewsEC’s proposal to ban products made using forced labour

28 October 2022

UpdateAudit Policy

26 October 2022

EventMembers’ Engagement Day

19 October 2022

Stories from practiceInsight from SME accountants: sustainability matters for the new generation

12 October 2022

EventThe impact of bribery and corruption on SMEs

11 October 2022

UpdateSME Update

30 September 2022

UpdateAudit Policy

13 September 2022

Stories from practiceInsights from SME accountants: taking up the sustainability challenge to help SMEs

29 August 2022

Stories from practiceInsights from SME accountants: from professional sports to environmental accounting

9 August 2022

Stories from PracticeInsights from SME accountants: practitioners help SMEs go green

25 July 2022

UpdateSME Update

12 July 2022

Stories from practiceInsights from SME accountants: how to keep bringing value to small businesses

6 July 2022

UpdateAudit Policy

6 July 2022

PublicationPublic audit oversight

29 June 2022

PublicationDefining a public interest entity

21 June 2022

PublicationStronger internal controls to reduce corporate risks

17 June 2022

UpdateAudit Policy

7 June 2022

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?