A guide to the new auditor reporting requirements
Auditor’s reports around the world are being fundamentally changed to provide more information and transparency to all stakeholders. Such expanded disclosures is a positive change meant to improve the dialogue, and consequently trust, between companies and shareholders.
In Singapore, the new reporting requirements take effect for annual periods ending on or after 15 December 2016. Among the key changes is the requirement for auditors to identify and report on Key Audit Matters (KAMs) in the audit report. KAMs are matters that require significant attention when performing the audit. They could include issues like choice of accounting policies and significant weaknesses in internal controls that have a material impact on the financial statement.
KPMG has been one of the leaders in the change in auditor reporting requirements, being an early adopter of the new requirements in Singapore, Hong Kong, Australia and the UK. Based on our experience, we have identified several key elements for a successful implementation of the new requirements. They include:
The next step is a critical one for audit committees, management and investors. Find out more about what you can do now to prepare for the way ahead.