Publication

12 April 2018

Simplifying auditing standards for small or non-complex entities Exploring possible solutions

Confidence in smaller companies’ performance benefits us all. Especially since they contribute more to the EU economy than large enterprises do. An audit of financial statements (hereafter: audit) can instil such trust as auditors check if historical financial information is reliable.

But should auditing a small or non-complex entity with e.g. 20 employees follow the same standards as a large company with 50,000 people? The current International Standards on Auditing (ISAs) have become too complex for the needs of smaller entities because audit regulators and standard setters focus on protecting capital markets. However, since smaller entities are major contributors to growth, they must not overlook them when dealing with auditing standards.

As the difficulties of applying the ISAs in this environment become more apparent, the status quo is not an option. This Cogito publication explores different solutions to help the IAASB find an efficient way to deal with small or non-complex entity audits. We aim to open the debate, so all stakeholders can work towards a way forward on this strategic issue.

Related content

Consultation responseIAASB consultation on Audits of Less Complex Entities

17 September 2019

In the mediaEvolution of SME audit in Europe from the perspective of the legislation and auditing standards

10 April 2019

In the mediaIFAC Gateway – Simplifying Auditing Standards for Small or Non-Complex Entities–Exploring Possible Solutions

18 May 2018

PublicationRediscovering the value of SME audit

9 February 2018

PublicationStandard setting in the 21st century

9 June 2017

PublicationAudit exemption thresholds in Europe

23 May 2016

PublicationFEE shows that EU countries increasingly move towards International Standards on Auditing (ISAs)

16 April 2015

Press releaseFEE Briefing Paper ‘Proportionality and International Standards on Auditing (ISAs)

5 September 2011

EventTax Day 2020

19 February 2020

EventDigital Day 2019: What does innovation cost?

19 November 2019

In the mediaAn Overview of KAMs in the European Banking Sector

15 November 2019

NewsDigitalisation Awards 2019

8 November 2019

UpdateSME

6 November 2019

UpdateAudit Policy

5 November 2019

EventSME agenda for ECON: new term, what priorities?

5 November 2019

EventEvolving needs of SMEs: the profession’s role?

24 October 2019

UpdateAudit Policy

7 October 2019

PublicationEU Directive on Whistleblower protection

7 October 2019

PublicationKey audit matters in European Banking sector – update 2019

7 October 2019

Stories from practiceTo rebuild trust in auditors, we need the courage to speak up

7 October 2019

NewsSME Update

4 October 2019

PublicationHow to secure financing for SMEs?

30 September 2019

Consultation responseIAASB consultation on Audits of Less Complex Entities

17 September 2019

PublicationTax Dispute Resolution

13 September 2019

Stories from practiceAn external CFO supports SME growth

9 September 2019

UpdateSME

6 September 2019

Team memberHarun Saki

22 July 2019

UpdateAudit Policy

12 July 2019

Sign up for our newsletter