FEE recommends the IAASB to limit its requirements as far as possible so that the ISAs remain principles based and not become complex and rules-base. FEE encourages the IAASB to adopt a systematic approach to develop additional standards only if they are absolutely required on a global level.
FEE recommends the IAASB to limit its requirements as far as possible so that the ISAs remain principles based. This will mitigate the risk of the ISAs becoming too “cluttered” with details, which can distract from the core principles. The tendency for complex rules‐based requirements favoured by many regulators is a move away from what the profession believes and is a step in the wrong direction.
In addition, ensuring that the ‘‘IAASB’s standards evolve as necessary’’ provides a clear understanding that additional standards should be developed only if they are absolutely required on a global level. It is also important for countries applying the ISAs to have sufficient time to adapt to the changes to these standards and translate them. Continual changes risk becoming counterproductive to the global acceptance of the ISAs. Therefore, caution needs to be taken against producing abstract or theoretical literature or making quick‐fix changes to individual ISAs. The IAASB could adopt a systematic approach to changes instead of the piecemeal way in which changes have been issued in the more recent past.
FEE is also of the opinion that the auditor’s role may evolve beyond his/her core function of auditing financial statements and extend to the audit of reports outside of the financial statements. Additional assurance might be obtained regarding areas of the annual report beyond the audited financial statements, for example the directors’ report. However, the IAASB should not seek to require when such other reports ought to be subject to assurance ‐only how such an assurance engagement would be undertaken if required or requested.
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