Audit policy update

• Accountancy Europe issues CSRD transposition tracker
• Accountancy Europe publishes papers on sustainability reporting assurance
• IESBA approves new sustainability assurance standards
• IFIAR issues statement on private equity investment in audit firms

Accountancy Europe issues CSRD transposition tracker

Accountancy Europe closely monitors the CSRD transposition across European Economic Area (EEA) countries. The tracker provides up-to-date information on national implementation. Amongst other information, the tracker highlights how each country defines:

• who can provide assurance – whether statutory auditors, other auditors, or independent assurance providers
• which assurance standards apply – as no EU assurance standard is adopted yet, countries can apply their national standards
• supervisory bodies – each country has designated a regulator responsible for oversight of sustainability assurance.

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Accountancy Europe publishes papers on sustainability reporting assurance

The Corporate Sustainability Reporting Directive (CSRD) requires companies to produce sustainability reports in line with the ESRS, subject to assurance. The first reports and assurance opinions will be published in 2025, based on 2024 data.

Assurance standards like ISSA 5000 and CEAOB guidelines set principles for these engagements. The European Commission will adopt a limited assurance standard for the EU by October 2026.

Our 3 publications highlight key aspects on the assurance practitioner’s approach to double materiality assessment, value chain information and transition plans to contribute to the CSRD implementation and readiness debate.

IESBA approves new sustainability assurance standards

The International Ethics Standards Board for Accountants (IESBA) approved two sets of standards aimed to strengthen public trust in sustainability reporting and assurance.

Additionally, IESBA introduced updates addressing the use of external experts and announced plans to develop a standard on accounting firm culture and governance, emphasizing ethical leadership. Read more

IOSCO supports new global ethics standards for sustainability assurance

IOSCO has endorsed the International Ethics Standards for Sustainability Assurance (IESSA), developed by IESBA to enhance trust in sustainability-related reporting.

IOSCO praised IESBA’s outreach efforts and highlighted the alignment of IESSA with its recommendations for a robust global assurance framework. It encourages jurisdictions to adopt or reference the standards, supporting global alignment in sustainability assurance. Read more

IFIAR issues statement on private equity investment in audit firms

The International Forum of Independent Audit Regulators (IFIAR) has addressed the increasing trend of private equity investments in audit firms in a recent statement.

While acknowledging potential benefits such as quality management systems and talent acquisition, which could improve audit quality, IFIAR also highlighted several risks. These includes challenges in maintain auditor independence due to complex investor relationships, and potential cultural shifts within firms that may undermine professional scepticism and integrity.

The organisation plans to engage with audit firm leaders to monitor developments and support regulators in assessing the impacts of private equity investments in their jurisdictions. Read more