IFAC SMP Committee Response to IAASB ISA 315 (Revised) Exposure Draft

ISA 315 (Revised) is arguably the single most important ISA as it forms the foundation for an audit. The SMPC supports the IAASB revising the standard and commends the Board on the considerable amount of work that has been undertaken in developing the proposals and modernizing the standard. Nevertheless, the SMPC strongly urges the IAASB to take the necessary time to ensure the final version of the standard can be operationalized for audits of all different sizes and complexities. It is concerned that the length, complexity and over-engineering of some of the proposals will mean that risk assessments will involve increasingly detailed work including documentation, which may not necessarily improve audit quality, but which would make audits inefficient from a cost/ benefit perspective for smaller and less complex entities.