EU deadline for audit standards is ‘unrealistic’

Link: ICAS says 2005 ISA deadline ‘unrealistic’

In a letter to internal market commissioner Frits Bolkestein, ICAS has expressed its concern over the feasibility of the EC proposals. The institute is worried that many of the smaller audit firms will not be ready to deal with the standards if they become mandatory for all statutory audits in 2005.

‘The institute is confident that, by 2005, ISAs could be successfully applied by larger audit firms in the audit of those companies having to prepare their accounts in accordance with international financial reporting standards,’ stated the institute in the letter.

‘However, it is concerned that other audit firms might not have the resources required to undertake the system changes and training necessary to be ready to use ISAs within the same timeframe,’ ICAS added.

Although the institute is troubled over the suggested timing, it did back the broad thrust of the potential reform of EU statutory audit.

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