ESMA comment letter on the IAASB’s proposed strategy and work plan

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08 Apr, 2014

The European Securities and Markets Authority (ESMA) has issued their comment letter on the International Auditing and Assurance Standards Board’s (IAASB’s) consultation paper ‘The IAASB’s proposed strategy for 2015-2019 and proposed work programme for 2015-2016’.

The consultation paper outlines three key strategic objectives around financial statement audits, global developments and collaboration, and puts forward a work plan for 2015-2016 which prioritises the topics of quality control, professional scepticism and special audit considerations relevant to financial institutions. 

ESMA believe that “the strategic objectives of the IAASB for 2015-2019, as indicated in the CP, are appropriate and reasonable given the time and organisational constraints of the IAASB”. 

ESMA supports the priorities identified by the IAASB in the proposed work plan for 2015-2016 including the special audit considerations related to financial institutions, the IAASB’s decision to review the International Standard on Quality Control 1 (ISQC1) – Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements and the IAASB’s intention to revise ISA 600 – The work of related auditors and other auditors in the audit of group financial statements

Consistent with comments made by the Financial Reporting Council (FRC) and the Association of Chartered Certified Accountants (ACCA), ESMA highlights that the IAASB should consider additional areas to address in their work programme and provide a number of suggestions in their comment letter.

The full comment letter can be obtained from ESMA's website.

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