IFAC SMP Committee Response to IAASB Strategy Survey

The IFAC Small and Medium Practices Committee welcomes the opportunity to provide input to the International Auditing and Assurance Standards Board future strategy and supports the planned work to explore what more can be done for audits of smaller or less complex entities. Worldwide, small- and medium-sized entities, representing over 90% of business, rely primarily on SMPs as their preferred advisers. It is important for the IAASB to give greater consideration to matters relating to SMEs and SMPs in all of its activities. For example, the Committee believes that the IAASB should look closely at root cause analysis behind regulator findings that result in calls for the IAASB to act. If the standards are sound, but non-compliance is the issue, there may be no need for action by the IAASB. Where misunderstanding/ misinterpretation of the standards has led to non-compliance, clarification (e.g., implementation support) could be warranted.