The proposed revisions to the European Statutory Audit Directive (published on 30/11/2011) suggest that member states should 'ensure that a proportionate and simplified audit for SMEs is possible'. Until now the APB's view has been that 'an audit is an audit' and all audits must comply with the Clarified International Standards on Auditing.
They did publish the helpful PN 26 Guidance on Smaller Entity Audit Documentation BUT do we think there is a way to introduce proportionate and simplified audits in the UK? What should we be asking the APB to do?
My preference would be to reduce the amount of documentation needed to demonstrate compliance, but as this is a requirement of the ISAs, I'm not sure how it could actually be reduced!