In response to feedback received on its Public Interest Entity (PIE) Track 2 Exposure Draft (ED), the IAASB released a post-exposure consultation setting out its final position for amendments to the ISAs and ISQMs which differs to the position presented in the ED.

In our joint submission with the ACCA on the preceding ED, we questioned the appropriateness of extending all the differential requirements in the IAASB Standards from listed entities to public interest entities (PIEs). In our joint submission to this follow up consultation we support the new position of extending the differential requirements in the IAASB Standards that currently apply to audits of listed entities, to publicly traded entities (PTEs). We also support adopting the definition of PTE for the IAASB Standards which is fully aligned with the definition in the IESBA Code.

While we support the IAASB’s intention to revisit whether the differential requirements in the IAASB Standards should be extended from PTEs to PIEs at a future date, we do not expect our view to have changed substantially by the second half of 2026 when this review is currently proposed for. We believe that differential requirements in the IAASB Standards should only be extended when and where there is a clear need.