Why Change the Auditor’s Report?

The auditor’s report is the key deliverable communicating the results of the audit process. Investors and other financial statement users have asked for a more informative auditor’s report—in particular for auditors to provide more relevant information to users.

Research, public consultations, and stakeholder outreach, including global roundtables, indicate that enhanced auditor reporting is critical to influencing the perceived value of the financial statement audit.

The objective of this initiative is to explore possible actions to address perceived issues when undertaking audits of less complex entities for further IAASB consideration.

As part of the IAASB’s focus on professional skepticism, this publication provides an update on the IAASB’s efforts to appropriately reflect professional skepticism in its recently-issued, and soon-to-be-issued, standards and exposure drafts. It also includes other relevant news and information, and recent activities of the IESBA and IAESB, related to professional skepticism.

The ISA 540 (Revised) Implementation Working Group is responsible for the implementation of ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures, with the objectives of:

• Promoting awareness of the revised standard;
• Informing and educating users;
• Opening a dialogue to learn about the experiences of those responsible for adopting and implementing the standard; and
• Preparing for post-implementation review efforts.