Between overregulation and exemptions, EFAA advocates a SMP friendlier environment.
The audit profession in the EU made a big step forward with the modernisation of the 8th Directive, now the Directive 2006/43/EC on statutory audit of annual accounts and consolidated accounts in the EU. It aims to improve transparency and reliability of statutory audits by stressing the importance of professional standards, independence and ethics, as well as promoting high quality qualification requirements, including International Standards on Auditing (ISAs).
Although the new rules are mainly directed to large audit firms auditing large companies, SMPs are also at stake. Some issues are of the utmost importance: quality assurance and the implementation of oversight public bodies in and by the national authorities being one of those.
EFAA watches that SMPs' interests are taken into consideration. We participate in the ISA Subgroup of the European Group of Audit Oversight Bodies (EGAOB), in the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and of the International Ethics Standards Board for Accountants (IESBA).