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Business News Wales
30-04-2025
- Business
- Business News Wales
ACCA Presses Audit Regulator to Drive Proportionate SME Audit Requirements
ACCA (the Association of Chartered Certified Accountants) is calling on the UK regulator to ensure that audit requirements for SMEs are proportionate, aligning with prevailing international standards. Responding to a consultation from the UK corporate governance regulator the Financial Reporting Council (FRC) Small and medium-sized enterprises market study , ACCA said the focus of the rules should be on the complexity of an entity rather than on size. While commending the FRC for addressing the challenges faced by SME auditors, Mike Suffield, director of policy and insights, ACCA, and formerly head of FRC's Audit Quality Review team, said: 'ACCA is a strong proponent of globally consistent standards with regard to both corporate reporting and audit and assurance. We believe that it would be valuable and in the public interest for the FRC, as part of its focus on SMEs and audit, to set out clearly the basis for its decision not to adopt the IAASB's International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). 'The FRC should set out its proposed alternative arrangements and allow stakeholders to provide their feedback once it has developed firm proposals.' ACCA's response was informed by a roundtable with members and the FRC where auditors and users of audited accounts were able to express their views and discuss the challenges of SME audits. Lloyd Powell, head of ACCA Cymru/Wales, said: 'The focus of standards should be on complexity rather than size given that an entity may be large in size but still be less complex. By focusing on complexity rather than just size, any initiatives by the FRC to address the scalability issues with the UK ISAs will be likely to help a much larger number of firms and practitioners.' ACCA called on the FRC to take multiple actions to improve SME audits including: Ensuring stakeholders understand the purpose of SME audits in a bid to reduce the expectation gap; Working with others, including ACCA, to communicate the benefits of SME audits; Ensuring standards are scalable and fit for purpose Undertaking further work to see how SMEs can be clear that the benefit of an audit outweighs its cost. Read the ACCA submission here . More Stories from Food & Drink Wales:
Yahoo
30-04-2025
- Business
- Yahoo
ACCA urges FRC to ensure audit standards for UK SMEs
The Association of Chartered Certified Accountants (ACCA) has called on the Financial Reporting Council (FRC) to ensure that audit requirements for SMEs in the UK remain proportionate and aligned with international standards. The call comes as a response to the FRC's consultation on the SME market study, with ACCA emphasising the need for complexity-based regulations rather than size-based ones. During a roundtable discussion with FRC members, auditors, and users of audited accounts, participants shared their insights and addressed the challenges of auditing SMEs. ACCA Policy and Insights director and FRC's Audit Quality Review team former head Mike Suffield said: 'ACCA is strong proponent of globally consistent standards with regard to both corporate reporting and audit and assurance. We believe that it would be valuable and in the public interest for the FRC, as part of its focus on SMEs and audit, to set out clearly the basis for its decision not to adopt the IAASB's International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). 'The FRC should set out its proposed alternative arrangements and allow stakeholders to provide their feedback once it has developed firm proposals.' ACCA also outlined several recommendations for the FRC to enhance SME audits. It suggested exploring ways to bridge the expectation gap in the UK audit market, so that the public, investors, and SMEs have a clearer understanding of the auditor's role. Additionally, ACCA recommends that the FRC and professional bodies should better communicate the advantages of audits, highlighting the importance of investing time and resources in them. The ACCA believes that the FRC should reassess the proportionality of the UK International Standards on Auditing (ISAs) and consider the scalability of these standards for SME audits. In addition, they propose that the FRC should conduct focused research on the application of the ethical standard to SME activities and their audit and assurance arrangements, which could lead to the development of additional guidance for the SME sector. Earlier in April 2025, ACCA partnered with the Astana International Financial Centre Green Finance Centre to host a seminar in Astana, Kazakhstan. The event aimed to enhance understanding of sustainability disclosures among regulators and business leaders in Central Asia. "ACCA urges FRC to ensure audit standards for UK SMEs " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
EU's Omnibus directive needs careful consideration, says ACCA
The Association of Chartered Certified Accountants (ACCA) has highlighted the necessity for careful evaluation of the European Union's (EU) 'Omnibus' directive. Announced in February 2025, the directive proposes changes to the European Green Deal, aiming to reduce the number of companies required to publish sustainability details and delay implementation by a year. The proposals also aim to decrease the number of companies needing to audit their supply chains and limit information required from small and medium sized enterprises (SMEs). As a result, around 80% of businesses will no longer fall under the Corporate Sustainability Reporting Directive (CSRD). Instead, compliance requirements will primarily affect the largest corporations, given their significant social and environmental impact. ACCA said that it supports the directive's intent to save costs, reduce burdens on SME's, and enhance competitiveness. However, Mike Suffield, ACCA's policy and insights director, stressed the need for clarity and consistency. He said: 'While we welcome the intent of the directive, businesses need consistency, clarity, and certainty; the Omnibus Directive needs careful consideration to ensure that it delivers on these requirements, while acknowledging the need to drive climate action.' The global accountancy body added that it has supported robust sustainability reporting frameworks and voluntary disclosures globally. It is assisting accountants and businesses with understanding and complying with the CSRD. ACCA also underscored the importance of aligning European sustainability reporting with IFRS Sustainability Disclosure Standards to prevent regulatory divergence and minimise global market friction. Suffield added that: 'ACCA will be analysing the Omnibus Directive in greater detail to fully understand the impact on our global membership and our partners. We stand ready to assist the EU in their development and implementation of proposals, and to ensure globally consistent and clear sustainability reporting requirements for business.' Meanwhile, the Institute of Chartered Accountants in England and Wales views the Omnibus proposals as a significant retreat from original sustainability reporting goals. "EU's Omnibus directive needs careful consideration, says ACCA " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
EU's Omnibus directive needs careful consideration, says ACCA
The Association of Chartered Certified Accountants (ACCA) has highlighted the necessity for careful evaluation of the European Union's (EU) 'Omnibus' directive. Announced in February 2025, the directive proposes changes to the European Green Deal, aiming to reduce the number of companies required to publish sustainability details and delay implementation by a year. The proposals also aim to decrease the number of companies needing to audit their supply chains and limit information required from small and medium sized enterprises (SMEs). As a result, around 80% of businesses will no longer fall under the Corporate Sustainability Reporting Directive (CSRD). Instead, compliance requirements will primarily affect the largest corporations, given their significant social and environmental impact. ACCA said that it supports the directive's intent to save costs, reduce burdens on SME's, and enhance competitiveness. However, Mike Suffield, ACCA's policy and insights director, stressed the need for clarity and consistency. He said: 'While we welcome the intent of the directive, businesses need consistency, clarity, and certainty; the Omnibus Directive needs careful consideration to ensure that it delivers on these requirements, while acknowledging the need to drive climate action.' The global accountancy body added that it has supported robust sustainability reporting frameworks and voluntary disclosures globally. It is assisting accountants and businesses with understanding and complying with the CSRD. ACCA also underscored the importance of aligning European sustainability reporting with IFRS Sustainability Disclosure Standards to prevent regulatory divergence and minimise global market friction. Suffield added that: 'ACCA will be analysing the Omnibus Directive in greater detail to fully understand the impact on our global membership and our partners. We stand ready to assist the EU in their development and implementation of proposals, and to ensure globally consistent and clear sustainability reporting requirements for business.' Meanwhile, the Institute of Chartered Accountants in England and Wales views the Omnibus proposals as a significant retreat from original sustainability reporting goals. "EU's Omnibus directive needs careful consideration, says ACCA " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
07-02-2025
- Business
- Yahoo
ACCA warns of risks in sustainable reporting assurance market
The Association of Chartered Certified Accountants (ACCA) has issued a warning regarding emerging risks within the UK's sustainable reporting assurance market, urging vigilance despite the market's current efficacy. The association has acknowledged the Financial Reporting Council (FRC) for its study on the UK's sustainable reporting assurance market, while cautioning against complacency. The FRC's study, titled 'Assurance of Sustainability Reporting Market,' raises concerns about the quality of assurance services provided. It notes a trend towards market concentration by the Big Four audit firms and points to the UK's uncertain regulatory position as a factor contributing to market immaturity. Additionally, the absence of an established regulatory framework is seen as an issue. ACCA Policy and Insights director and FRC former director Mike Suffield said: 'It is good to see the FRC quickly producing this market study – pace was one of the characteristics we urged. We agree with the concerns that the FRC has raised, and we would welcome the opportunity to work with the government, the regulator and others to ensure we put in place quickly the right policy in this important emerging area.' The study recommends three actions: establishing a clear policy framework, creating a unified regulatory regime, and enhancing the quality of information regarding sustainability assurance. ACCA emphasises that any new regulatory regime must be proportionate, acknowledging the nascent stage of sustainability reporting and assurance. ACCA Regional Policy and Insights lead Jessica Bingham said: 'While welcoming the report and its recommendations, ACCA urges greater emphasis on the role of small and medium sized enterprises (SMEs) and small and medium sized practices (SMPs). 'With approximately 5.5 million SMEs in the UK, a clear narrative needs to be set out as to how they will interact with the sustainability assurance market and what role SMPs will play in this market to ensure consistency and competitiveness.' This warning from ACCA comes on the heels of their latest release in a series on sustainability reporting, titled "Sustainability Reporting: Risk and Materiality." The new instalment provides businesses with guidance on identifying material information for sustainability reporting and outlines a three-step process to assist in this endeavour. "ACCA warns of risks in sustainable reporting assurance market " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
