As it stands, a new audit report tells shareholders the key risks and the auditor’s response to them – what the auditor did to address them. In other words, what rocks did the auditor check under and how did he go about turning them over? However, it is not telling shareholders what the auditor found when he looked under those rocks. It does not say, for example, how acceptable the policies, estimates or disclosures were.
Restoring Trust: Shaping the future of corporate reporting