We've provided feedback to the US Center for Audit Quality on its publication on generative AI (genAI) in financial reporting and audit!
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We have provided feedback to the US Center for Audit Quality (CAQ) on its publication on generative AI (genAI) in financial reporting and audit. In our comment, we highlight genAI’s transformative potential across audit processes, talent and quality management while addressing new risks such as AI-driven biases and data integrity concerns.
The Committee of European Auditing Oversight Bodies (CEAOB) issued a summary of the responses to its enforcement questionnaire. The report addresses actions of competent and delegated authorities for 2023 in 27 EU Member States as well as 3 European Economic Area countries.
The report includes key statistics about the administrative measures and sanctions related to statutory audits of public interest entities (PIEs) and non-PIEs.
It also provides further details about the audit framework breaches including those related to ethics and quality management. Finally, information about the involvement of the competent authorities in the oversight of sustainability reporting and other relevant aspects for sustainability assurance within the context of Corporate Sustainability Reporting Directive (CSRD) are presented.
The European Commission (EC) published its annual report that summarises the activities of the International Financial Reporting Standards (IFRS) Foundation (IFRSF), the European Financial Reporting Advisory Group (EFRAG), and the Public Interest Oversight Board (PIOB).
The report outlines the governance structures, activities, transparency measures, and funding sources of each organisation. The report is overall very descriptive and contains no major conclusions. Accordingly, the EC seems, on the basis of this report, to be overall satisfied with the work and funding of these three organisations.
The IAASB published the International Standard on Sustainability Assurance (ISSA) 5000 on 12 November 2024 upon the certification of the PIOB.
ISSA 5000 has been designed as a framework-neutral and profession-agnostic standard that can serve as a global baseline for assurance engagements on sustainability reporting.
The standard will be effective for assurance engagements on sustainability information reported for periods beginning on or after 15 December 2026. Early adoption, however, is possible.
As from 2025, the IAASB will issue additional guidance to support adoption and implementation of its standard.
The Dutch Authority for the Financial Markets (AFM) issued its Trend Monitor 2025 report to fulfil its mission to promote fair and transparent financial markets and to contribute to sustainable financial well-being.
The report sets out the key trends and risks for four areas of supervision: financial services, capital markets, asset management and accountancy & reporting.
The Financial Reporting Council (FRC) introduced the operational separation in 2020 which required the UK’s four largest audit firms to voluntarily split their audit and non-audit practices. All four firms have met the 2024 deadline set by the FRC.
Measures taken include the creation of independent audit boards chaired by Audit Non-Executives, improved transparency on financial transactions between the audit and non-audit business, and greater accountability at firm level for the delivery of operational separation outcomes.
The International Organization of Securities Commissions (IOSCO)
IOSCO Issues Statement of Support on the ISSA 5000
European Contact Group
Considerations for companies’ sustainability reporting under the CSRD
Public Company Accounting Oversight Board (PCAOB-US)
PCAOB Updates Standard-Setting and Rulemaking Agendas
International Forum of Independent Audit Regulators (IFIAR)
IFIAR announces next step in audit quality initiative
