Monday, August 17, 2020
The auditor’s report was amended in 2016 to enhance its communicative value. The IAASB has now issued a survey seeking views on the enhancements from a wide range of stakeholders including users, auditors, preparers of financial statements, professional accountancy organisations, regulators and audit oversight bodies. They are seeking feedback on any practical challenges or concerns, and whether there should be further enhancements to the auditor’s report. The IAASB is also exploring views on whether reporting on Key Audit Matters (KAMs) should be expanded to more types of entities, whether the enhancements should be extended to other types of engagements (e.g. review and other assurance engagements), and ISA 720 (Revised), The Auditor’s Responsibilities relating to Other Information.
“The auditor’s report is the key deliverable addressing the output of the audit process,” said Tom Seidenstein, chair of the IAASB. “Investors and other users of financial statements have called for auditors to provide more relevant information in the auditor’s report based on the audit that was performed. The 2015 revision of the Auditor Reporting Standards was an important step aimed at improving the value of the financial statement audit and the continued relevance of the auditing profession. The IAASB is now seeking comment on whether the revised standards are achieving this goal.”
The AUASB encourages Australian stakeholders to complete this survey in order to influence the IAASB in its deliberations on these important matters, including whether auditors should report more information. The AUASB also wants to hear your views to inform us when we complete the survey, as well as on future deliberations on possible changes to the auditor’s report, including whether KAM reporting should be extended. This is an extensive survey and stakeholders may find it useful to complete this in word before completing it online. In this case we ask that stakeholders provide us a copy of the survey (in word form) or send us your main points via email.
Professor Roger Simnett, AUASB Chair states “The auditor’s report is critically important in communicating the value of the audit. It is important we know Australian stakeholder’s views on whether further changes are needed so we can, if appropriate, influence the direction of the IAASB, and inform the direction in Australia.”
Stakeholders are invited to complete the Survey until October 23, 2020. Click here for PDF version of the survey.
Feedback and queries on this topic are welcome and should be directed to [email protected] or by telephone +61 3 8080 7400.