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.