Chartered Accountants Ireland has responded to IAASA’s consultation on the proposed introduction of Audit Quality Indicators (AQIs). While supporting IAASA’s objective of enhancing audit quality, the Institute has expressed significant reservations about implementing a formal AQI reporting framework at this time.
The response raises concerns regarding the complexity of measuring audit quality through limited quantitative indicators, challenges around consistency and comparability across firms, and the potential operational and cost burdens involved.
We also note that international approaches to AQIs remain varied and we caution against proceeding with a national framework ahead of further European and global developments.
In summary, we highlight that the proposed implementation timeline and use of AQI data for regulatory risk assessment are considered premature. The Institute recommends further development of standardised definitions and continued consultation before progressing with this project.
Please see the Institute response.
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