In the Circular No. 26/2011 issued by the Institute on 25 May 2011, members were informed that the International Auditing and Assurance Standards Board ("IAASB") has recently released a Consultation Paper titled “Enhancing the Value of Auditor Reporting: Exploring Options for Change”. The Consultation Paper is issued following perceptions that auditor reporting is not meeting the information needs of financial statement users in a global business environment especially with increasingly complex financial reporting requirements. Thus, the Consultation Paper is released to obtain better understanding and to determine whether there are common views among users of the audited financial statements and other stakeholders on the current usefulness of auditor reporting.
In order to facilitate better understanding and feedback on the IAASB Consultation Paper, the Institute has summarized the essence of the paper in an article titled “Narrowing the Audit Gaps – A Call for Change”. In the article, the expectations vis-à-vis the information gap identified by some stakeholders of the auditor reporting is diagrammatically drawn to illustrate the gap which is currently occurring between users’ expectation of the auditors and the financial statement audit and what the actual audit is. The article also summarises the three (3) models suggested in the Consultation Paper as possible options for change to reduce both gaps and to improve the communicative value of auditor reporting.
The Institute would like to highlight that improvements toward auditor reporting will introduce a shift in the auditing landscape and change the responsibilities of many stakeholders especially the auditing professionals. All stakeholders should take this opportunity to channel their concerns, suggestions and comments to IAASB in relation to the Consultation Paper via the Institute.
Please refer to the article by visiting Narrowing the Audit Gaps - A Call for Change for further information on how to submit your response.