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EFAA latest news

03.04.2019

EFAA has published a new report 'Evidence on the Value of Audit for SMEs in Europe: Perspectives of Owner-Managers, Company Accountants and Directors' that presents new and recent evidence on the perceived value of audit for small and medium-sized entities (SMEs) in Europe. "The evidence presented in our survey and the reports from other countries may have significant implications for regulators and policy makers, standard setters and the profession, especially auditors", says Bodo Richardt, EFAA President. "The value of the SME audit is central to the public interest, and the benefits for...

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25.02.2019

The European Federation of Accountants and Auditors for SMEs (EFAA) has published the “EFAA Memorandum for Elections to the European Parliament 2019 - SMPs Supporting SMEs for Europe” in which EFAA sets out what it sees as the top priorities for SMEs in the coming few years. Small and Medium-sized Enterprises (SMEs) are crucial to the future economic and social prosperity and stability of Europe. Due to their inherent characteristics and their structure they are relying heavily on the advice from their trusted advisors. Small and Medium-sized accounting Practices (SMPs) play this...

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22.02.2019

EFAA Event Reveals Limited Support for Reporting of NFI by SMEs Making the reporting of non-financial information (NFI) by SMEs mandatory would not be effective in stimulating SMEs and driving their role for a sustainable economy. This was the prevailing view at an expert roundtable event on the role of small and medium-sized enterprises (SMEs) in making economies more sustainable and circular, hosted by the European Federation of Accountants and Auditors for SMEs (EFAA) in Brussels on 19 February 2019. The event was especially timely given a day later the Commission published a Consultation...

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18.12.2018

EFAA has submitted a response to the IAASB Exposure Draft, ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement expressing concerns about the scalability and complexity of the proposals. EFAA’s response is shown here while the Exposure Draft (ED), and all responses to the ED including EFAA’s (#68), are here. The ED has attracted considerable attention in the accounting media as one can see here. Katharine Bagshaw, ICAEW manager of auditing standards, has said: “ISA 315 is a cornerstone standard and changes to it will affect all other standards,...

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19.11.2018

While the EU Directive on Non-Financial Information(NFI) Disclosure only applies to larger companies, preliminary results from the EFAA survey suggest that NFI reporting is quite common for SMEs due to national requirements. Furthermore, there is also growing interest in the benefits of integrated thinking and reporting by SMEs. The survey’s findings have implications for regulators and policy makers seeking to harmonise in the shape and form of SME reporting and to enhance the transparency of societal and environmental impacts of corporate activities across the European Union. The...

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17.08.2018

EFAA President Bodo Richardt was the author of the article ‘How Much Roadmap into the (Digital) Future is there in Europe for SMPs?’ that headlined in the special July 2018 Platinum Anniversary issue of the journal of the Institute of Chartered Accountants of India (ICAI) alongside those authored by leaders of the global accountancy profession, including IFAC President Rachel Grimes. The article presents an overview of the challenges to SMPs, examines some significant technological trends relevant for SMEs and SMPs and concludes with how SMPs and their professional organisations...

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03.07.2018

Blockchain, Artificial Intelligence (AI), Data Analytics – What are the potentials of these technologies today? How secure is their use and how are they changing the economy and our society? And specifically, what does all this mean for small and medium sized accountancy and audit firms? These forward-looking questions were the basis for the presentations and discussions of the "EFAA International Conference - Digital Transformation of SMEs" on 21 June 2018 in Brussels. To this end, the European Federation of Accountants and Auditors for SMEs (EFAA) invited internationally recognized...

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06.06.2018

The Edinburgh Group, a coalition of 16 accountancy bodies from across the world including EFAA, has launched the Edinburgh Group SMP Survey 2018 The SMP of the Future in a Changing World. The survey is available in multiple languages including Dutch, French, German, Spanish, Polish, Portuguese and Romanian. The results will be summarized into a report slated for issue at the World Congress of Accountants in Australia this November. EFAA encourages its member organisations to promote participation in the survey by their members working in or as SMPs. The results will help inform the Edinburgh...

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16.02.2018

This survey is being conducted by the European Federation of Accountants and Auditors for SMEs (EFAA) in collaboration with its member organisations to determine the views of European small and medium-sized entities (SMEs) on audit and alternatives to audit. It seeks to establish the benefits that SMEs perceive from having an audit and, where they are not required to have one, the motivations and reasons for choosing one or not choosing one. We anticipate the results, which will eventually be analysed and summarized into a report, will be used to promote and advocate the views of SMEs with...

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07.02.2018

EFAA is pleased to provide its comments to the Consultation Paper Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public Interest. We welcome the Monitoring Group's (MG) initiative to strengthen international standard setting and the ultimate objectives of this endeavour. Below you will find 'Key Points' and our responses to the specific questions and options presented in the consultation paper. We focus our remarks on those issues most relevant to the SMP and SME constituencies that we represent and on which we have significant...

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