The Committee of European Banking Supervisors (CEBS) has published its letter to the European Commission commenting on the consultation on the possible adoption of the International Standards on Auditing (IASs) at a European level.
CEBS believes that external audits using high-quality globally accepted audit standards contribute to a sound banking system and financial stability, and supports the adoption of ISAs at the European level.
CEBS’s comments on the consultation included:
- There is enough evidence of convergence towards ISAs in some jurisdictions and adoption of ISAs in others to support the notion that ISAs are internationally accepted.
- The EU would maximise the benefit of adopting a globally accepted set of standards without amendment, and any amendments would not be consistent with the objective of having a single, world-wide set of standards.
- Add-ons by individual Member States can be justified in terms of necessity in relation to the scope of statutory audits. However, carve-outs by individual states should be avoided save where an ISA is not conducive to the European public good.
- ISQC1 (Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements) should be supported because it would increase the benefits of an ISA adoption at European level.
View Comments on EC consultation on the adoption of ISAs, 5 October 2009