The new international auditor reporting requirements will soon be a reality – it’s time to get ready.
For some time, investors have demanded more than the standard text from the auditor’s report. They want greater transparency about the auditor’s responsibilities, as well as insight into what the auditor considered to be the key areas of the audit and what they did in those areas. The new international auditor reporting requirements – effective for December 2016 year ends for those following International Standards on Auditing – give auditors the opportunity to share more insight with investors.
The main change is that auditors will be required to describe in the audit reports of listed companies the key areas they focused on in the audit and what audit work they performed in those areas.
Our publication Enhancing Auditor Reporting discusses how investors, audit committee members and company management may be affected by the new requirements, and lists some steps they may consider taking in preparation for the change.
We hope that you find this publication a helpful starting point in understanding and preparing for the new-style audit reports. Watch our video, and download your copy of Enhancing Auditor Reporting: Providing insight and transparency.