ICAS says 2005 ISA deadline 'unrealistic'
The full introduction of International Standards on Auditing for listed companies in the European Union by 2005 is unrealistic, according to ICAS.
The Scottish institute has sent a letter to internal market commissioner Frits Bolkestein in response to EC proposals, outlining concerns that many smaller audit firms will not be ready to deal with the standards if they become mandatory 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.