ASB seeking feedback specific to U.S. auditor’s reports

The AICPA’s Auditing Standards Board (ASB) is asking members to complete a survey to help inform the board’s response to the International Auditing and Assurance Standards Board (IAASB) Invitation to Comment: Improving the Auditor’s Report (ITC).

On June 22, the IAASB released its ITC, seeking input on potential changes to improve the information provided in the auditor’s report on financial statements. The ASB has written a letter requesting member input and providing access to the survey, which will remain open through Sept. 10, 2012.

The IAASB’s suggested changes to auditor reporting include:

• Providing additional information in the auditor’s report to highlight matters that the auditor believes are likely to be most important to users’ understanding of the audited financial statements or the audit. This would be referred to as “Auditor Commentary.” This information would be required for public-interest entities, which at a minimum include listed entities, and could be provided at the auditor’s discretion for other entities.
• A conclusion by the auditor on the appropriateness of management’s use of the going-concern assumption in preparing the financial statements, and an explicit statement about whether material uncertainties related to going concern have been identified.
• A statement by the auditor identifying whether any material inconsistencies between the audited financial statements and other information have been found based on the auditor’s reading of other information. Specific identification of the information considered by the auditor also would be included.
• Prominent placement of the auditor’s opinion and other entity-specific information in the auditor’s report.

—From AICPA/JofA staff reports