Eumedion welcomes plans to overhaul global audit standard-setting process
The current governance of audit standards lacks broad stakeholder involvement and is dominated by accountants. The Monitoring Group, the group of international financial institutions and regulatory bodies and responsible for the overall governance of the international audit-related standard-setting process, issued a consultation document that outlines concrete proposals to make the audit standard-setting process future proof. In its today's issued comments, Eumedion welcomes the proposals that in many ways appear to mimic the governance of the IFRS Foundation. The composition of the independent board of the International Auditing and Assurance Standard Board (IAASB) should indeed be revised in a way that includes members from all major stakeholder groups.
Eumedion considers ethics standards for auditors as a topic that should not be delegated to a separate ethics board. Instead, Eumedion trusts the nominating committee to select a single group of board members that are capable of setting standards for ethics as well. Ethics standards for accountants in business are also of importance, but fall outside the remit of a future IAASB that should focus on audit only. Setting ethics standards for accountants that have no auditor responsibilities could be entrusted to the International Federation of Accountants.