The Auditing Profession and Structure of the Audit Process

Abstract

Although the IFRS approach for SMEs avoids any definition of what a small or medium-sized company might be in terms of sales or balance sheet figures and the first draft for IFRS statements for SMEs only states that it is not designed for companies with less than 50 employees, a more precise definition of this group of companies exists within the European Union since the introduction of the 4^th EU Directive. The 4th EU Directive also introduced a segregation of reporting requirements in relation to the size and type of comanies.