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I have gone through the course notes and as part of my adventures on the interwebs came across financial reports of various companies. One amongst them is:
https://www.xchanging.com/sites/default/files/attachments/pdf/XchangingAR2014_0.pdf
The auditors report has a different format compared to the one shown in the tuitions and even though nothing presented has been incorrect, I’d like to know when have we done away with a report that was always presented on a single page with notes accompanying the statements. Would any benefits be derived or what major factors led to it being presented by this way ?
A revised audit report is now in issue but not yet examinable in the ACCA exams. It will be soon and the notes will be updated for when that happens
Any major factors that led to this and any advantage that the standard now appreciates that this change helps with ?
Well, here are the intended benefits – I found these by putting “new auditors report” into google search!
“What are the Intended Benefits?
Enhanced communication between auditors and investors, as well as those charged with corporate governance
Increased user confidence in audit reports and financial statements
Increased transparency, audit quality, and enhanced information value
Increased attention by management and financial statement preparers to disclosures referencing the auditor’s report
Renewed auditor focus on matters to be reported that could result in an increase in professional skepticism
Enhanced financial reporting in the public interest”
That looks like it could be a good question to ask!
“What are the short-comings of the traditional audit report and what are the intended benefits of the new style report?”
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