• Register
Return to: Home > News > Standards > Nordic Federation of Public Accountants launches consultation on audit standard for SMEs

Nordic Federation of Public Accountants launches consultation on audit standard for SMEs

The Nordic Federation of Public Accountants (NRF) has released for consultation the Standard for Audits of Smaller Entities (SASE) which aims at strengthening the value proposition of the audit profession to SME clients.

A year and a half in the making, SASE was released earlier this summer by the NRF which comprises the institutes of public accountants in Sweden, Denmark, Finland, Iceland and Norway. With audit thresholds rising all over the world, audit and assurance services seemed to be less valuable for SMEs, NRF's standard was developed to support the belief that auditing is and will remain a valuable service for small entities.

"A prerequisite for the auditor to remain relevant for this group is however that an audit can be performed efficiently and with high quality. International Standards on Auditing (the ISAs), which apply to all audits today, have become more and more extensive and increasingly difficult to tailor for an efficient audit of small entities," NRF said in a statement.

SASE has less detailed requirements than the ISAs and puts greater emphasis on the use of the auditor's professional judgement, according to NRF. "This is reflected in the standard with more generic requirements and that the auditor will have to consider certain specific circumstances when designing audit procedures rather than having to perform specific predefined procedure."

Speaking at DFK International annual conference, the Institute for the Accountancy Profession in Sweden (FAR) secretary general Dan Brännström said the new standard had the potential to be ground-breaking and if adopted in the Nordic region, could most certainly be rolled out to other countries.

"Many audit and accounting firms have been successful for a long period with traditional business models and now is the right time to review those models and come up with more modern solutions and develop new services," Brännström warned.

The standard is out for consultation until 19 October 2015, and can be consulted here

Related article:

To audit or not to audit, that is the question

Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    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.