Whether and how the auditor’s report should change has been the subject of much debate since the financial crisis. The debates have moved beyond the merits of changing the model, to the shape of what auditor’s reports will become.
The International Auditing and Assurance Standards Board (IAASB) and the US Public Company Audit Oversight Board (PCAOB) released public consultations for new standards in July and August, respectively, which will come into effect in a few years. (In the UK, the Financial Reporting Council’s new auditor’s report came into effect in Q4 this year.) The IAASB’s comment deadline was 22 November. We highlight below some of the key points in our response letter.
See also our overview of all these developments which includes insight into what is being considered in the EU’s proposed Audit Directive and Regulation.