ISA for Less Complex Entities

The profession is in the process of reviewing its stance on proportionality of auditing. It has traditionally been considered as there being one type of auditing whether a company is large, medium or small. The International Standards on Auditing apply irrespective of size and complexity. Undoubtedly this has led to practitioners setting parameters to their audit work themselves dictated by undeniable practical limitations when auditing smaller, less complex and therefore less risky businesses. There now exists a standard effective from audits beginning on or after 15 December 2025, if a country adopts it, which is standalone and an alternative to the complete suite of International Standards on Auditing, which will assist and guide practitioners to carry out compliant audits producing reasonable assurance. Our country has not yet adopted this standard however we consider it appropriate to inform practitioners in our country who deal predominantly with less complex entities as to what the current thinking on the subject is. It is important to emphasise that this does not mean that we can apply the standard before our authorities actually adopt it.

The Speaker

Mario P Galea is a certified public accountant holding a warrant to practice both as an accountant and as an auditor. Currently practising as a business advisor providing governance oversight and advisory services to businesses and corporations. Serves as an independent non-executive director on the boards and audit committees of various listed companies in the financial and commercial sectors. Mentor and advisor to family businesses. Founder, managing partner and chairman of accountancy and audit firm EY in Malta until retirement in 2012. Specialised in auditing and assurance which he has practiced for 35 years in Malta and abroad. Lectured in auditing, assurance and professional and business ethics and led several training courses. Speaker at various business and professional conferences in Malta and abroad. Assisted businesses in several areas particularly relating to governance, accounting and systems of control. Served as President of the Malta Institute of Accountants and for many years formed part of the Accountancy Board which is the accountancy profession regulator in Malta. Served on various professional committees in Malta and abroad such as the council of the Federation des Experts Comptables (FEE) in Brussels (now Accountancy Europe). Member of the Ethics and Regulatory committees of the Malta Institute of Accountants in Malta.