Accountancy Europe recommends developing a separate SME audit standard
One year and a half after our call for action to the IAASB, we are delighted to respond to its auditing less complex entities (LCEs) consultation. In this consultation, the IAASB frequently referred to the options we explored in our publication Simplifying auditing standards for small or non-complex entities (April 2018).
What priorities for the IAASB?
Our response to the IAASB’s consultation highlights the following 3 priorities for the IAASB:
- as the first priority, develop a separate standard for LCE audits based on the ISAs
- in the longer term, use the separate standard as an opportunity to revise the ISAs as a whole with a think simple first/building blocks approach
- anticipate, and plan the converging of the above exercises.
Some EU Members States’ experiences in applying a separate national LCE standard could serve as a starting point for the IAASB to create its standard. Accountancy Europe can act as a platform where the IAASB and our members countries’ can exchange and collaborate on this issue.
Debating this strategic issue is part of the programme of our Members’ Engagement Day on 2 October 2019.