1 / 8

APB research into Improving the Audit Report

APB research into Improving the Audit Report. Responses to “Promoting Audit Quality”. Auditing profession appeared comfortable with current approach User groups expressed concerns: Overly legalistic – too many caveats Opinion should appear earlier Should be more informative regarding

rumor
Download Presentation

APB research into Improving the Audit Report

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. APB research into Improving the Audit Report

  2. Responses to “Promoting Audit Quality” • Auditing profession appeared comfortable with current approach • User groups expressed concerns: • Overly legalistic – too many caveats • Opinion should appear earlier • Should be more informative regarding • Estimates • Judgments • Sufficiency of evidence • Uncertainties

  3. APB’s response (1) THE AUDITORS REPORT: A TIME FOR CHANGE? DECEMBER 2007

  4. The Auditor’s Report: A Time for Change? • Explained the evolution of the current report • Described ‘the changing scene’ • Offered a number of alternative reports to help stimulate debate

  5. Alternative Reports • Example 1: Fully compliant with ISA 700 (Revised) • Example 2: ISA 700 (Revised) “Lite” • Example 3: Minimum report that complies with CA 2006

  6. Feedback on The Auditors Report : A Time for Change • Views varied by Stakeholder Group • Institutional Investors • audit reports should be more informative • favoured reduction in current ‘boiler plate’ • Companies • favoured reduction in the ‘boiler plate’ • did not support added ‘narrative’ • Auditors • wanted to achieve compliance with ISAs • wanted to retain ‘Bannerman’ • many, but not all, wanted to maintain the status quo

  7. APB’s response (2) THE AUDITORS REPORT: A TIME FOR CHANGE? ISA (UK & IRELAND) 700 REVISED DECEMBER 2007 SEPTEMBER 2008

  8. APB’s Response (2) • Facilitate shortened versions of auditor’s report (Example 2) by including ‘boilerplate’ wording on auditor responsibilities and scope of audit on APB website. • Prepare changes to ISA (UK & Ireland) 700 to allow cross reference to APB website and still be compliant with ISA 700 • Prepare other changes to auditor’s report to • Reflect CA 2006 • State compliance with APB Ethical Standards • Separate the true and fair view opinion from other legal responsibilities (the 2 part report) • Initiate research into what additional ‘narrative’ information should be included

More Related