IFAC SMP Committee Response to IAASB's Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics

The SMP Committee welcomes and supports the IAASB Data Analytics Working Group’s work to explore the effective and appropriate use of technology, with a focus on data analytics, in the audit of financial statements. In its view, an objectives- and principles-based approach to standard setting is now more necessary than ever, especially to prevent the ISAs from being out of date as soon as they are updated. At this point in time, the SMP Committee believes that it would be appropriate for the IAASB to expand or develop guidance in this context rather than looking to revise the existing requirements. In general, it strongly encourages the IAASB to be cognizant of the potential impact of any future developments on both SMEs and SMPs and to ensure that future proposals are proportional.