07 March 2012

IFAC revised Policy Position Paper 2, promoting a single set of auditing standards for all

"IFAC reaffirms its view that a single set of auditing standards that can be applied to all audits is in the public interest", stated Ian Ball, chief executive officer of IFAC. "A key objective of financial reporting is to provide users with relevant and reliable information for decision-making; a single set of standards gives users confidence that audits—whether small or large, simple or complex—have been performed to the same high standards."

The use of ISAs for audits of small and medium-sized entities has again been brought into focus following the release of the European Commission’s proposed audit legislation late last year.

"The IAASB’s ISAs are designed to be applied in a manner proportionate to the size and complexity of an entity", continued Prof Arnold Schilder, chairman of the IAASB. "IAASB is committed to addressing the needs of small and medium-sized entities and small and medium practitioners."

Policy Position Paper 2, 'A Single Set of Auditing Standards: Audits Of Small And Medium-Sized Entities', was first issued by IFAC in 2008. The main revisions to the position paper include updated references to:

• the Clarified ISAs;
• other standards that the IAASB has issued and that are relevant to small and medium practitioners; and
• tools and guidance made available to practitioners by IFAC and the IAASB.

Press release

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