post Wednesday October 10, 2012
The IAASB has set a set of proposed amendments to the Auditors Report on which the general public can comment. It is aimed at improving the quality of the Auditor’s Report and its transparency. The ITC (invitation to comment) will aid the IAASB in future standard setting proposals which emphasizes the importance of understanding about the value and viability of the IAASB’s preferred options for improvement in auditor reporting and how to best affect those changes globally.
Some of the suggested improvements include:
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The highlighting of matters that may be considered vital to the user’s understanding of the audited financial statement. For example Public Interest Entities would require such types of information. That section would be referred to as the “auditor’s commentary”.
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The auditor should comment on the appropriateness of the management’s use of the ongoing concern assumption when preparing their financial statements. A statement should be included that identifies uncertainties in relation to the issue of ongoing concern.
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Another statement from the auditor would be required that would state whether they have identified any material inconsistencies between the audited financial statements and other information based on the auditor’s reading of other information and specific identification of the information considered by the author.
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It is also important to prominently place the auditor’s opinion, entity specific information and improvements on the clarity and transparency of the audits performed, in the auditor’s report
For more detailed information on the proposed amendments, click here.
Source: IFAC.org
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