EFAA

EFAA welcomes modernised auditing standards

Brussels, 12 March 2009 - The European Federation of Accountants and Auditors (EFAA), Europe's leading accountancy organisation dedicated to the needs of small and medium-sized businesses, welcomed the recent completion of the International Auditing and Assurance Standards Board's (IAASB) ‘Clarity Project' as a result of which all International Standards on Auditing (ISAs) have been modernised. 

 "The Clarity Project is a significant advance and its timely completion does much to promote the convergence of auditing standards, not least in the European Union, said EFAA President Federico Diomeda. Audit quality will be enhanced by revisions to standards for important aspects of the audit, such as accounting estimates, related parties and the audit of groups.  In addition, the new structure of the standards and their clear language will be of benefit to all audits, including those of small and medium-sized companies.

EFAA has been pleased to be involved in the Clarity Project through responding to exposure drafts and participating in the IAASB Consultative Advisory Group, an integral and important part of the IAASB's formal process of consultation.  EFAA is also a member of the ISA subgroup of the European Group of Auditors' Oversight Bodies, which has assessed the substance of each ISA to allow the European Commission to provide its input to the Clarity Project.  Throughout, EFAA has sought improvements to ISAs to increase their utility in the audits of small and medium-sized companies.

The modernised standards are intended to be first applicable to audits of financial statements beginning on or after 15 December 2009. EFAA believes national standard setters should work to a short timetable for adoption and implementation. In this regard, EFAA stresses the importance, however, of the availability of national language translations and sufficient time for auditors to become familiar with the new standards.

EFAA is in the closing stages of a survey to establish the level of preparation for the Clarity ISA and whether, and to what extent, there is an ‘educational gap'. This survey, carried out in seven languages, is to inform EFAA member bodies and others concerned with ISA implementation.  It may also assist those deciding on the adoption of ISAs in the EU.

"Although this is a time to congratulate the IAASB on the timely completion of a significant project, the real work lies ahead, added Mr Diomeda.  "Much remains to be done by the many parties interested in the quality of auditing to ensure that the potential benefits of the Clarity project ISAs are realised.

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