Sveriges Riksbank's reponse to the EU consultation on the adoption of ISAs in the EU, 15 September 2009

European Commission

DNR 2009-632-AFS

Sveriges Riksbank welcomes the opportunity to comment on the possible adoption of the International Standards on Auditing (ISAs) at European level. Below please find answers to some of the questions posed in the consultation.

Question 8: Do you support adoption of ISAs at EU level?
The Riksbank supports the adoption of ISAs at EU level.

Question 9: If yes, which of the following options do you support:

Option 1 – ISAs should be adopted for the audit of the consolidated accounts of the listed companies (IFRS accounts);

Option 2 – ISAs should be adopted for the statutory audit of all companies except for the audits of small companies where Member States would be free to choose which audit standards should be applied;

Option 3 – ISAs should be adopted for the statutory audit of all companies, including small companies for which an audit is required.

The Riksbank supports option 3. The Riksbank is positive to harmonisation. A single set of international standards of auditing will contribute further to the achievement of the internal market. Furthermore, since a harmonized framework is likely to contribute to improved comparability and quality of financial statements and to audit quality, the Riksbank’s view is that harmonization would also be beneficial from a financial stability perspective.

Sveriges Riksbank
Martin W Johansson
Deputy Head of Department