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

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.