Over the new few years, auditors around the world will begin issuing enhanced auditor’s reports that go beyond the traditional auditor’s report. The new reports will be more informative and insightful, providing greater transparency into the types of issues addressed and the judgements made to shareholders and other users.
For example, the new Key Audit Matters section in the International Auditing and Assurance Standards Board’s (IAASB) revised reporting standards will shed light on areas that were the most significant in the audit of financial statements, why they were significant and how the audit addressed them.
We’re already off to a good start. In the UK and Netherlands, where auditors have already been issuing enhanced auditor reports, shareholder reaction has been very positive, referring to a ‘sea change’ in auditor reporting.
This is not just a change in audit standards or a compliance exercise - it’s an opportunity. It’s one we intend to embrace.
Bob Moritz, PwC Global Chairman, explains how sharing greater insight offers the opportunity to demonstrate the relevance of the audit and reinforce confidence in its value.
PwC's Global Chief Accountant, Paul Fitzsimon and Partner Diana Hillier talk about the reforms and the opportunities and challenges that lie ahead.
The IAASB's revised auditor reporting standards mark a move to reports that are more informative, discursive and insightful. The most significant advance in audit reporting in decades, the new reports will undoubtedly stimulate enhanced conversations among auditors, companies, audit committees and shareholders.
The reforms aim to create more enlightened reports by focussing on three key things: insight, readability and transparency.
PwC Global Assurance Leader, Richard Sexton said: "The reporting rules now allow us to innovate within our public audit reports and provide insight that better demonstrates the value and relevance of the audit. We are focussed on reinforcing trust in the audit so as to underpin confidence in reported financial information."
Tel: +44 (0) 20 7804 0472