• Katrina Glanz
4. semester, Revision (cand.merc.aud.), Kandidat (Kandidatuddannelse)
In recent years, the auditor’s report has been criticized and many have called for the auditor’s report to provide more relevant information to users based on the audit that was performed. There is an expectation gap between the audit profession and the users of the financial statement with regard to the auditor’s work and the communication in the auditor’s report. As a result, the International Auditing and Assurance Standard Board (IAASB) have focused on improving the auditor’s report. This thesis examines the IAASB’s “Exposure Draft: Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Audited” which was published in July 2013 and whether the proposal meets the intent of a more informative and understandable auditor’s report for the users of the financial statement.

The main changes to the auditor’s report include the introduction of a new key audit matters section, statements on going concern and a change of the ordering of sections of the auditor’s report. Key audit matters, which are selected from matters communicated with those charged with governance, are those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statement. Furthermore the auditor shall state whether the going concern basis of accounting is appropriate and whether the auditor has identified material uncertainty relating to going concern. In addition, the IAASB’s exposure draft suggests that the auditor’s opinion shall be presented in the beginning of the auditor’s report, followed by key audit matters and going concern. Entity-specific information gets a more eminent placement, while boilerplate descriptions of the responsibilities of the management and the auditor is placed in the end of the auditor’s report.

In the analysis of the IAASB’s proposal to improve the auditor’s report, I have included comment letters to the IAASB’s exposure draft from relevant respondents, including accounting firms and accountant associations, preparers of financial statements and users of the financial statement. It is important that all three parties and their interests are represented to ensure a nuanced analysis.

From the analysis of the IAASB’s exposure draft and the comment letters it can be concluded that the proposed amendments will improve the auditor’ report. There is a general support for the exposure draft and it’s fundamental ideas. Most of the respondents believe that the proposed amendments will result in a more transparent, meaningful and relevant auditor’s report for the users of the financial statements and their understanding of the conducted audit. However, there are some concerns about the proposed changes and some issues where the proposed standards are insufficient or unclear. On this basis, I have suggested some improvements to the exposure draft, which I recommend implemented in the final standards.
Antal sider74
ID: 206421367