Partner - Sustainability Reporting & Assurance, Public Policy & Regulation at Forvis Mazars in the UK
A disappointing, although perhaps not surprising, development. Whatever the shortcomings of this standard, the full ISAs (which are increasingly focussed on listed and PIE audits) are not, whatever standard setters may say, sufficiently scalable in practice for many SME audits. My experience of audit around the world suggests something is needed to ensure high quality, proportionate, cost-effective SME audits. But if its not this standard, what is it? I would like to see jurisdictions looking at this standard more closely, applying it in practice ("Beta testing" if you like), and considering how it could be strengthened (and by that I don't mean adding more requirements!) rather than consigning it the scrap heap. There are many jurisdictions which need a workable solution and without a global solution, we fragmentation of auditing standards. #audit #ISAforLCE #auditquality #SME
At its meeting on 6 December 2023, the AUASB reflected on prior consultations and public interest considerations and determined not to adopt the International Standard on Auditing of Financial Statements of Less Complex Entities in Australia. The AUASB have issued a Feedback Statement which summarises the AUASB’s position on the adoption of this standard in Australia. Click link to view: https://shorturl.at/chuyJ
Phil Minnaar
8mo
I share your sentiment 100% Paul. And as you say, probably not a surprise. As also pointed out by Paul T, I believe the AUASB decision was 'informed' quite some time ago, as also explained in their response to the ED back in January 2022.
Technical Director at European Federation for Accountants and Auditors for SMEs (EFAA)
8moWell said Paul. I believe the Australia’s regulators and standard setters, for similar (flawed) reasons, decided not to adopt the IFRS for SMEs some years ago. It’s high time national policy makers, regulators and standard setters started to think small (or less complex) first rather than preserve the status quo.