Updated auditor reporting standards have improved quality of information for investors, governance and financial reporting, according to a report from the Association of Chartered Certified Accountants (ACCA).
The report Key audit matters: unlocking the secrets of the audit looked at 560 audit reports across eleven countries and four continents to examine the effects of the International Auditing and Assurance Standards Board (IASB’s) changes to auditor reporting standards. Applicable from December 2016 year-end audits, they require the auditor to list areas at risk and explaining the audit approach to tackle them, this increases transparency to stakeholders.
ACCA head of audit and assurance Andrew Gambier said: “As these benefits are significant contributors to better financial reporting more generally, it’s important that audit firms are given encouragement to improve their implementation of the standard, through proportionate and sensible regulation.”
The report can be found here.
