The Institute for the Accountancy Profession in Sweden (FAR) secretary general Dan Brännström has called on accounting firms to rethink their client offering in order to better adapt to future market trends.

“Many audit and accounting firms have been successful for a long period with traditional business models and now is the right time to review those models and come up with more modern solutions and develop new services,” Brännström said speaking at DFK International annual conference.

He explained that two years ago FAR had commissioned a study into the future of the profession, and a key outcome of it was the need to differentiate services, for instance, not providing the same audit for small companies as for complex financial institutions.

As such, since January 2014, FAR as part of the Nordic Federation of Public Accountants has worked in collaboration with other institutes in the region on the development of a Nordic audit standard for SMEs.

The Standard for Audits of Smaller Entities (SASE) was published in early July of this year for consultation.

“The standard is principle based. Rather than tell the auditor how to carry out the audit, it will be up to the auditor’s professional judgement,” Brännström told the DFK delegates. “The audit must be very risk focused and the auditor should design the right procedures to be able to submit a report that will give the same level of assurance as an ISA based audit.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He believes that if adopted in the Nordic region, the standard could be rolled out to other countries as according to him it has already attracted interest from around the world.

DFK International executive director Martin Sharp said that while SASE is very topical for firms throughout the Nordic region, other member firms from around the world had been very interested to hear about the project.

The standard is out for consultation until 19 October 2015, and can be consulted here

Related article:

To audit or not to audit