Auditing: New standards, new topics and new ways of working
More than 200 participants attended this year's audit conference organized by Expertsuisse - the expert association for auditing, tax and fiduciary services. The current state of the debate on the tasks, roles and self-image of the audit industry holds many opportunities. New auditing standards (ordinary auditing) and an updated standard on limited auditing will come into force in 2023.
The auditing profession is becoming increasingly attractive and helps the economy develop in harmony with society and the environment. This is more or less the conclusion of this year's auditing conference. In addition, new auditing standards were presented, which will come into force in 2023 - in connection with the updated, internationally compatible independence requirements. Expertsuisse is the driver of this self-regulation in Switzerland. Last but not least, the auditing industry is indispensable for the further development of sustainability reporting. The professional association is also an important driving force in other initiatives such as the further development of corporate governance and the forms of work of knowledge workers.
Political framework conditions for auditing
The spring and summer sessions of the Swiss parliament had a number of topics on the agenda that decisively affect the auditing industry and its work. The federal law on combating abusive bankruptcy is intended to prevent debtors from abusing bankruptcy proceedings to discharge their obligations and thus damage other companies and compete unfairly. The Graber parliamentary initiative to make the labor law more flexible and preserve proven working time models, as well as the motion "Facilitate digital accounting" show that the structures and work surrounding accounting and auditing must adapt to modern ways of working and living as well as new types of information processes.
Developments in the auditing industry in Germany
A view across the national border can help to critically mirror one's own challenges and topics and to benefit from the experience of others. Thus, Expertsuisse invited Ms. Melanie Sack, Deputy Board Spokesperson of the German Institute of Certified Public Accountants (IDW) as a speaker. As different as the two jurisdictions may be, the credo of the German professional colleagues - "Business needs trust" - is very similar to its Swiss counterpart "Auditing creates trust - trust moves". The sustainability issue is also seen in Germany and Switzerland as an opportunity for promoting young talent in the auditing industry and for the economy.
New standards in the area of sustainability
For investors, non-financial environmental, social and governance (ESG) factors play a central role in investment decisions. Likewise, expectations are increasing in many places to consider sustainability criteria in management work - from corporate strategy to reporting. In April 2021, the European Commission published its proposal for a Corporate Sustainability Reporting Directive (CSRD) to replace the 2014 Nonfinancial Reporting Directive (NFRD). The directive is to be transposed into national law by December 1, 2022, and initial disclosure standards should be adopted by October 31, 2022. Large and capital market-oriented companies will therefore already have to disclose the 2023 reporting year in accordance with CSRD. However, the timetable seems to be pushed back, with both the shadow rapporteur and the European Council proposing a delayed introduction. According to the director of Expertsuisse, Dr. Marius Klauser, these developments in the EU will also become relevant in Switzerland over the next few years: "Parent companies/subsidiaries in Switzerland will report on sustainability issues in line with EU requirements and will probably also increasingly have these reports audited voluntarily. Through supply chain networking in Switzerland, this topic will then also reach the SME segment."
News at Expertsuisse
During the Audit Conference, Martin Nay (BDO), the long-standing department president of Expertsuisse, was bid farewell with great thanks. Alessandro Miolo (Deloitte) will be his successor in this important Expertsuisse function. Thanks to Expertsuisse, the promotion of young talent will also receive a new impetus: from 2023, auditing training will take a completely new form. More digital and sustainability skills will be taught, and this in a more digital way - flexible, effective and forward-looking.
Source and further information: Expertsuisse
