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Accountancy Europe responds to the public consultation survey by the International Auditing and Assurance Standards Board (IAASB), part of its post-implementation review (PIR) of ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures.
The response reflects feedback from members across Europe and aims to contribute constructively to the assessment of whether the standard is achieving its intended objectives in practice.
While Accountancy Europe acknowledges that ISA 540 (Revised) has generally strengthened the audit of accounting estimates and contributed to audit quality, it highlights a number of implementation challenges encountered by practitioners.
In particular, members noted concerns regarding the scalability and proportionality of certain requirements when applied to simple or low-risk estimates, where the additional procedures and documentation may provide limited audit value.
In addition, the response also draws attention to practical difficulties arising from the interaction between ISA 540 (Revised) and ISA 315 (Revised 2019), with auditors observing overlap and duplication in risk assessment and documentation requirements. Accountancy Europe encourages the IAASB to examine these issues closely as part of the review.
Accountancy Europe encourages the IAASB to consider targeted actions that simplify and clarify the standard while maintaining audit quality and reducing unnecessary burden on auditors.
The International Ethics Standards Board for Accountants (IESBA) has agreed to pursue a targeted project on firm culture and governance as part of its International Code of Ethics. The project aims to explore how ethical culture and governance arrangements can be reflected more explicitly in the Code while maintaining a principles-based approach.
The board discussed a framework built around several elements that influence ethical behaviour within firms, including leadership, accountability, incentives, communication and transparency. IESBA intends to develop an overarching requirement supported by application material rather than introducing extensive new detailed provisions.
According to the board, the project seeks to complement existing quality management standards and avoid unnecessary duplication. An exposure draft is expected in late 2026, with further stakeholder consultation planned before any amendments are finalised.
The International Ethics Standards Board for Accountants (IESBA) has published a snapshot outlining how its International Code of Ethics applies to the use of technology, including AI and other emerging technologies.
The publication explains that the Code’s principles-based framework remains relevant regardless of the technologies used and supports accountants in identifying and addressing related ethical and independence risks.
The snapshot also highlights technology-related revisions to the Code that became effective in December 2024, covering areas such as professional competence, automation bias, confidentiality and the evaluation of technology-generated outputs. In addition, IESBA outlines its ongoing work on technology, including the development of further guidance and educational materials.
IFIAR has published a public factsheet presenting the results of its 2025 Sustainability Survey, which covers sustainability reporting requirements, assurance practices and oversight frameworks across 47 member jurisdictions. The survey provides an overview of developments as of September 2025 and highlights emerging trends in sustainability assurance globally.
The results indicate that sustainability assurance is increasingly moving from a voluntary to a mandatory practice in many jurisdictions. At the same time, mandatory sustainability reporting requirements continue to expand, while reporting and assurance frameworks are becoming more closely aligned across jurisdictions.
The survey also suggests that regulatory attention is gradually shifting towards the development of inspection and oversight practices for sustainability assurance engagements.
The Financial Stability Board (FSB) convened a roundtable bringing together regulators, audit oversight bodies, standard setters, audit firms and other stakeholders to discuss audit quality and structural developments in the global audit industry. The discussions focused on factors that may influence audit quality and confidence in financial reporting.
Key topics included the increasing use of artificial intelligence and other technologies in audit, changing ownership structures within audit firms, including private equity investment, and recent trends in audit inspection findings. Participants also discussed whether existing regulatory, oversight and standard-setting frameworks remain appropriate in light of these developments.
The International Auditing and Assurance Standards Board (IAASB) has released a new set of frequently asked questions (FAQs) to support the consistent application of materiality under the International Standard on Sustainability Assurance (ISSA) 5000. The publication explains how materiality is considered by both the reporting entity and the assurance practitioner throughout a sustainability assurance engagement.
The FAQs provide practical guidance on topics such as double materiality, the relationship between an entity’s materiality process and the assurance practitioner’s responsibilities, and the role of materiality in planning, performing and evaluating sustainability assurance engagements. The document is intended to support consistent implementation of ISSA 5000 and does not amend or override the standard.
The publication forms part of the IAASB’s broader implementation support programme for ISSA 5000 ahead of the standard’s effective date in December 2026.
The UK Financial Reporting Council (FRC) has published revisions to several UK auditing standards aimed at reducing unnecessary reporting burden while enhancing the transparency and usefulness of auditor reporting. The changes affect ISA (UK) 700, 701 and 720 and follow stakeholder feedback on the clarity and proportionality of existing requirements.
The revisions seek to improve the communication of key audit matters and other information included in annual reports, while providing auditors with greater flexibility in applying professional judgement. The FRC has also emphasised that the changes are intended to avoid unnecessary complexity and additional procedures, particularly in relation to auditors’ responsibilities for information outside the financial statements.
The Dutch Authority for the Financial Markets (AFM) has published its final interpretation of Articles 16 and 16b of the Dutch Audit Firms Supervision Act (Wta), providing further clarity on the position of auditors within audit firms. The interpretation emphasises that auditors must maintain a central position and decisive influence within audit firms to enable them to act in the public interest.
The clarification follows a public consultation prompted in part by the increasing presence of external investors, including private equity investors, in the audit sector. The AFM notes that while external investment is permitted, audit firms must be structured in a way that allows auditors to provide counterbalance to commercial and financial incentives where necessary.
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