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IFAC Small and Medium Practices Advisory Group Response to the IAASB’s Exposure Draft proposed Narrow Scope Amendments to ISA 700 (Revised) and ISA 260 (Revised)

| Comment Letters

The SMPAG supports the IAASB approach to undertake the project on listed entity and PIE as two tracks with the ED focused on narrow scope amendments to ISA 700 (Revised) and ISA 260 (Revised) to support operationalizing the IESBA transparency requirement with an effective data that aligns with the revisions to the IESBA Code, followed by a separate track dealing with other issues that would have a later effective date.

The SMPAG supports the IAASB’s proposed approach to have a conditional requirement in paragraph 28 (c) of ISA 700 (Revised) that applies only when the relevant ethical requirements require public disclosure that differential independence requirements for audits of financial statements of certain entities were applied. In our view, this is a pragmatic solution to implementing the requirement of the IESBA Code (R400.20) in a manner deemed appropriate. We also agree with the revisions to ISA 260 (Revised) to increase transparency to those charged with governance that differential independence requirements for certain entities have been applied.

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