EBA欧洲银行-2011-04-04EBA-comments-to-IAASB-proposed-Strategy-and-Work_3页_115kb

EBA Comments on IAASB Strategy and Work Programme for 2012-2014

Core Content

The European Banking Authority (EBA) provides detailed feedback on the proposed strategy and work programme of the International Auditing and Assurance Standards Board (IAASB) for the period 2012-2014. The EBA emphasizes the importance of high-quality audit practices in supporting sound corporate reporting, which is vital for market confidence and discipline.

Main Points

The EBA evaluates the IAASB's strategic focus areas and proposed projects, offering both support and recommendations for prioritization.

Strategic Focus Areas

The EBA supports the IAASB's three strategic focus areas:

• Developing and revising standards: Including standards that support capital markets, other assurance services, and SMEs/SMPs.
• Monitoring and facilitating adoption: Ensuring that standards are implemented effectively.
• Responding to concerns: Enhancing the consistency of standard application through targeted activities.

Projects in Column B

The EBA supports the following projects:

• Project B.1: Responding to findings of the ISA implementation monitoring project, in consultation with the IAASB CAG. This is seen as crucial for improving confidence in audited financial statements.
• Project B.5: Obtaining feedback on the implementation of ISAE 3402 from service organizations, service auditors, and user entities. This is relevant given the use of assurance reports in outsourcing contexts.

The EBA suggests lower priority for:

• Project B.3: Revising or withdrawing ISAE 3400, unless there is a compelling need.
• Project B.6: Developing a publication on the benefits of adopting ISAs. While supportive, this is not seen as a high priority compared to other projects.

Additional Projects in Column C

The EBA recommends prioritizing:

• Project C.1: Work on IAPS 1004 and IAPS 1006, which are related to the audit of financial institutions and their relationship with supervisors. This is particularly relevant in light of the financial crisis and increased regulatory focus.

The EBA also highlights the potential value of:

• Project C.5 and C.6: Developing a new ISAE on assurance of corporate governance statements and internal control. However, it acknowledges the challenges in creating a harmonized international standard due to jurisdictional and structural differences in corporate governance and internal control frameworks.

Key Information

• The EBA is keen to ensure that audit standards support high-quality corporate reporting and regulatory oversight.
• It supports the IAASB's focus on implementation monitoring and addressing inconsistencies in ISA application.
• It recommends that the IAASB consider audit guidance for new accounting standards, such as those on loan loss provisioning and hedge accounting, which are being developed by the IASB.
• The EBA suggests maintaining flexibility in the IAASB's agenda to respond to emerging needs and challenges in the audit profession.

Conclusion

The EBA encourages the IAASB to remain responsive and flexible in its work programme, especially in light of evolving regulatory and financial landscape. It supports the current strategic focus areas and specific projects, while suggesting that certain additional projects should be prioritized based on their relevance to banking supervision and the implementation of audit standards.