APB seeks views on the audit of small businesses

News Article - 22 May 2012
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Two consultation papers have been issued by the Auditing Practices Board (APB) regarding the audit of small companies in the UK and Ireland.

Issues relating to the application of international standards on auditing (ISAs) are outlined in the two papers, entitled The need for guidance to aid the implementation of Auditing Standards on smaller entity audits and Draft Guidance on Smaller Entity Audit Documentation.

The APB is seeking views on whether additional guidance needs to be provided to help auditors assess small companies, in addition to opinions on whether Practice Note 13: The audit of small businesses should be updated.

Richard Fleck, APB chairman, said: "There has long been a debate about the nature and extent of additional guidance material necessary to assist auditors of smaller entities in applying auditing standards."

He added that the issue was linked to the way in which smaller entities were trained on the adoption of auditing standards and how they learn about changes in regulation.

Among the questions posed by the board is whether respondents feel that Practice Note 13 should be withdrawn, if further guidance should be provided and who should provide such direction.

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