Read key takeaways from the Accountancy Europe and European Contact Group (ECG) roundtable.
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The European Single Access Point (ESAP) will be set up as an EU-wide mechanism providing digital and centralised access to financial and sustainability information disclosed by companies in the EU. Auditors play a crucial role in promoting the transparency and reliability of such reporting. Investors and other stakeholders will be able to access ESAP and analyse, among others:
This factsheet aims to provide a brief overview of ESAP, focusing on matters relevant to audit profession.
The Committee of European Audit Oversight Bodies (CEAOB) issued draft guidelines for limited assurance engagements on sustainability reporting. The objective is to facilitate the harmonisation of the sustainability assurance across the EU.
The proposed guidelines are non-binding and do not override national pronouncements that are in force in EU Member States. However, national competent authorities may recommend or impose the use of the guidelines.
The guidelines are open for public consultation until 22 July 2024.
Accountancy Europe has responded to the International Audit and Assurance Standards Board (IAASB) proposed International Standard on Auditing 240: The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements.
We observe a certain level of inconsistency in stakeholders’ understanding with regards to the purpose of the financial statements audit. In this regard, revising ISA 240 is a positive step to clarify auditor’s responsibilities although the revision does not aim to expand the role and responsibilities of the auditor relating to fraud.
Accountancy Europe has provided comments on the Public Company Accounting Oversight Board (PCAOB) proposed requirements for reporting specific firm-level and engagement-level metrics.
Such reporting has the potential to pave the way for meaningful discussions on audit quality, although a learning curve is inevitable.
The PCAOB can utilise the proposed reporting mechanism to shape its oversight approach and fulfil its role as a regulator focused on improvement.
Finally, we suggest a pilot implementation to obtain feedback on the understandability and usefulness of the proposed metrics.
