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ACCG925 Auditing & Assurance Services | Report

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Auditing & Assurance Services (ACCG925)

   

Added on  2020-03-23

ACCG925 Auditing & Assurance Services | Report

   

Auditing & Assurance Services (ACCG925)

   Added on 2020-03-23

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ACCG925 – Individual Assignment TemplateFamily Name:First Name:Student ID:Lecturer Name:Time and Day of the seminar:1
ACCG925 Auditing & Assurance Services | Report_1
The key changes to the audit report. With a focus on the similarities as well as any differences between PCAOB and the International Auditing and Assurance Standards Board (IAASB) auditing reporting requirements. The opinion of auditors on the financial statements is often valued, however owing to the prevalence of global financial crisis, many have asked for the auditor’s report to be more informative in nature so that relevant information can be offered to the users (Church et. al, 2012). This is the reason why key changes have been made in the audit report. Firstly, a new section has been framed to communicate the key audit matters (KAM) so that items possessing immense significance can be provided to the users. Both IAASB and PCAOB standards necessitate KAM to be offered in association with the audit of the present tenure. However, the PCAOB offers illustrations of situations wherein it may be appropriate to disclose KAM/CAM of the past tenure. These illustrations are not offered by the IAASB standards. Further, both standards reflect that at least one KAM must form part of the auditor’s report but if there are no KAM/CAM, then a statement to the same must be reflected in the report. Secondly, it has been decided that the auditors will also disclose the name of the engagement partner in their report for enhanced knowledge. In relation to the audit of listed companies, both PCAOB and IAASB standards require the disclosure of engagement partner’s name but the manner of disclosure is different under both standards. Thirdly, in relation to audit, the opinion section of auditors has become compulsory to be presented first and it must be followed by the basis for opinion section. The ordering of these sections in both standards is similar in nature. Fourthly, in the audit report, it has become necessary for auditors to provide a statement regarding their fulfillment of ethical responsibilities and independence of auditors (Jeanette, 2014). Even though provisions regarding this change in auditing report are same under both IAASB and PCAOB, the IAASB separately requires the auditors to make an affirmative statement regarding the same. Fifthly, it has now become mandatory for auditors to provide a separate section that offers relevant information regarding material uncertainties in the financials of the company (Ruhnke, 2014). 2
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