• Register
Return to: Home > News > Standards > Three EU members yet to adopt international auditing standards

Three EU members yet to adopt international auditing standards

France, Germany and Portugal are the only EU countries yet to adopt international auditing standards (ISA) in the EU, according to a report by the Federation of European Accountants (FEE).

Issued by the International Auditing and Assurance Standards Board (IAASB), the standards have been voluntarily adopted by 25 of the EU member states, an increase on adoption figures from 2013, according to the FEE.

Under the EU Audit Directive, which entered into force 16 June 2014, the European Commission (EC) was granted the power to impose the use of ISAs for all statutory audits across the EU.

However, as the Commission is yet to formally adopt ISAs and nor has it set a timetable for adoption, the Directive allows EU member states to maintain national auditing standards in the meanwhile.

The fact that the remaining three countries are waiting for the standards to be implemented by the EC highlights the need for adoption across the EU, according to the FEE.

The federation warned that without a Union-wide implementation, ISAs might be adopted at different times and some of the standards may be neglected in their entirety within some jurisdictions.

Ultimately, this would result in "an increased lack of harmonisation throughout the EU".

Further, according to the FEE EU-wide coordination and collaboration would be more likely to guarantee the quality of each jurisdiction's ISA translation.

Speaking to The Accountant, a spokesperson for the FEE explained: "As far as FEE understands, the European Commission has not set a timeframe to adopt the ISAs.

"Even if the EC is empowered by law to adopt the ISAs at EU level (since the 2006 Directive actually), it seems unlikely that they will make this political decision in a foreseeable future."

As for those countries who are awaiting EC adoption, the spokesperson added some countries will also be affected by the legal implications of changing their standard-setting processes.

"For France and Germany, there is a process of transposition into national standards that has been in place for years," the spokesperson explained.

Looking to the future, the spokesperson added that 2015 had already witnessed successes in the form of ISA adoption by Italy and Poland, adding to ongoing progress in Portugal.

"Portugal is in the process of adopting," the spokesperson added, "We hope they will be ready soon."



Related story:

US 'anonymous' audit reports in potential conflict with IAASB standards

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.