The Institute of Chartered Accountants Australia (ICAA) supports measures that seek to enhance the understanding of the value of audit, discussed in new reform proposals from the International Auditing and Assurance Standards Board (IAASB).
The proposals to change the way auditors report include a requirement for auditors of large entities to
comment on areas they focused on most during the audit.
ICAA Head of Audit Policy Liz Stamford said it is important to consider how useful any of the changes to the audit report will be to the end user and whether any potential benefits exceed liability concerns.
“The proposed auditor commentary section represents a significant change for auditors. It is debatable whether more information will meet user needs.
“If investors are demanding more transparency about the audit process, the audit committee, owing to its unique oversight role, could report more formally on important matters in relation to the audit,” Ms Stamford said.
“We welcome the opportunity to consult on these proposals and look forward to engaging with practitioners and the business community on the potential impact of these proposals in Australia,” she added.
In addition to the new auditor commentary section, the IAASB is proposing that auditors include more information in their report about a company’s going concern statements, and report any breaches of the auditor independence requirements.
ICAA will be consulting with members and the profession in preparing its submission to the IAASB by 22 November, 2013.
The proposals to change the way auditors report include a requirement for auditors of large entities to
comment on areas they focused on most during the audit.
ICAA Head of Audit Policy Liz Stamford said it is important to consider how useful any of the changes to the audit report will be to the end user and whether any potential benefits exceed liability concerns.
“The proposed auditor commentary section represents a significant change for auditors. It is debatable whether more information will meet user needs.
“If investors are demanding more transparency about the audit process, the audit committee, owing to its unique oversight role, could report more formally on important matters in relation to the audit,” Ms Stamford said.
“We welcome the opportunity to consult on these proposals and look forward to engaging with practitioners and the business community on the potential impact of these proposals in Australia,” she added.
In addition to the new auditor commentary section, the IAASB is proposing that auditors include more information in their report about a company’s going concern statements, and report any breaches of the auditor independence requirements.
ICAA will be consulting with members and the profession in preparing its submission to the IAASB by 22 November, 2013.
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