By Steve Burkholder
NORWALK, Conn.--Auditors of listed companies worldwide may be called to go beyond the bare-bones “pass/fail” auditor opinion and report on “key audit matters,” address going concern issues and significant risks faced by a firm, and name the audit engagement partner if a new proposal of a global auditing panel is finalized.
Those planned changes stand out in revised and new international auditing standards floated July 25 by the International Auditing and Assurance Standards Board. IAASB is an arm of the International Federation of Accountants, the global professional accountants group that includes the American Institute of Certified Public Accountants as a member.
Spurred by the financial crisis, IAASB argues that significant change to the auditor's reporting model--a topic on which the leading U.S. auditing rulemaker plans to issue its own proposal in September--is warranted. More information provided by auditors is needed, and will enhance the credibility of the audit and of financial statements, according to the international board.
As suggested in public discussions held by IAASB in 2012, an auditor's highlighting of matters that arose during an audit could help signal risks or areas of potential concern in a company's operations.
However, companies and auditing firms cautioned against having auditors offer the kind of information about a company and its accounting that, in their view, should be conveyed by management.
The IAASB proposal on auditor's reporting is at https://www.ifac.org/publications-resources/reporting-audited-financial-statements-proposed-new-and-revised-international. The proposal includes a brief explanatory memorandum, which is at https://www.ifac.org/sites/default/files/publications/files/Explanatory%20Memorandum%20Included%20in%20the%20ED.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).