IAASB proposes changes to reporting on summary financial statements

By Neil Amato

The International Auditing and Assurance Standards Board (IAASB) on Monday proposed changes to reporting on summary financial statements.

The exposure draft for International Standard on Auditing (ISA) 810, Engagements to Report on Summary Financial Statements, deals with the auditor’s responsibilities relating to an engagement to report on summary financial statements derived from financial statements audited in accordance with ISAs by that same auditor.

The IAASB is proposing limited conforming amendments to ISA 810 as a result of the issuance of its new and revised auditor reporting standards, which address auditor reporting on general-purpose financial statements.

The proposed changes to ISA 810 “represent a balanced approach considering the objective of an engagement to report on summary financial statements and the report that is required to be issued,” IAASB Chairman Arnold Schilder said in a news release.

“The board’s approach also recognizes that the manner in which summary financial statements are prepared and presented may vary on a national basis depending on the criteria used, and therefore national auditing standard setters may further tailor ISA 810 in their jurisdictions,” IAASB Technical Director Kathleen Healy said in the release. “The board is therefore particularly interested in hearing from stakeholders in those jurisdictions where ISA 810 reports are frequently issued, to understand whether its proposed changes will be capable of being implemented and would be expected to benefit users of these reports.”

Comments on the exposure draft can be made at the IAASB website. The comment deadline is Nov. 2.

Neil Amato (namato@aicpa.org) is a JofA senior editor.


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