EFAA for SMEs participated in the survey IAASB’s post-implementation review of ISA 540 (Revised), concluding that the standard has largely achieved its objectives of strengthening the audit of accounting estimates and enhancing professional skepticism.
EFAA noted that the revised standard has improved audit quality, risk assessment and consistency across jurisdictions while remaining broadly scalable for different types of engagements. However, the response highlights challenges for small and medium-sized practices (SMPs), particularly regarding documentation requirements and the proportionate application of the standard to simple estimates. EFAA therefore encourages the IAASB to focus on additional implementation support, practical guidance and illustrative examples rather than revising the standard itself.
EFAA’s reply to the consultation is available here.