Enhancing the Auditor's Report: To What Extent is There Support for the IAASB's Proposed Changes?

2014 ◽  
Vol 28 (4) ◽  
pp. 719-747 ◽  
Author(s):  
Roger Simnett ◽  
Anna Huggins
Keyword(s):  
Communication Theory ◽  
Financial Statements ◽  
Data Availability ◽  
Additional Information ◽  
Stakeholder Groups ◽  
Stakeholder Support ◽  
Other Information ◽  
Information And Communication ◽  
Regulatory Bodies ◽  
Auditor Reporting

SYNOPSIS This article outlines proposed reforms to auditor reporting currently being considered by the International Auditing and Assurance Standards Board (IAASB), and other key national and transnational standard-setters and regulatory bodies. It adds to recent academic contributions on reforming the auditor's report by analyzing the 165 stakeholder responses to the IAASB's 2012 Invitation to Comment: Improving the Auditor's Report to determine levels of support for the IAASB's proposed reforms, and the differences, if any, between the views of various respondents based on stakeholder groups (e.g., audit and assurance firms, users, preparers, regulators, etc.) and regional classifications. Guided by insights from communication theory, our results show the levels of stakeholder support for the IAASB's proposed reforms addressing auditors' expectations, information, and communication gaps are mixed. The strongest overall support was for enhanced auditor reporting on other information attached to, or intended to be read with, the financial statements, and the least supported initiative was including additional information in the auditor's report about the auditor's judgments and processes. While overall there is generally consensus across both stakeholder groups and regions concerning the various questions investigated, we highlight where statistically significant differences between groups do exist. Notably, North American respondents were less likely to support a number of the IAASB's proposed reforms than their counterparts from other regions. Data Availability: The data used in this study are referred to on the IAASB's website.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB Rulemaking Docket Matter No. 34: PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements.

2011 ◽  
Vol 5 (2) ◽  
pp. C1-C14 ◽  
Author(s):  
Joseph F Brazel ◽  
Paul Caster ◽  
Shawn Davis ◽  
Steven M Glover ◽  
Diane J Janvrin ◽  
...  
Keyword(s):  
Audit Quality ◽  
Exposure Period ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Statement ◽  
The Public ◽  
Additional Information ◽  
Public Company ◽  
Auditing Standards ◽  
Auditor Reporting

SUMMARY Recently, the Public Company Accounting Oversight Board (PCAOB or Board) issued a concept release to solicit public comment on the potential direction of a proposed standard-setting project on the content and form of reports on audited financial statements. The objective of the concept release was to discuss several alternatives for changing the auditor's reporting model that could increase its transparency and relevance to financial statement users, while not compromising audit quality. To that end, the alternatives included (1) a supplement to the auditor's report, in which the auditor would be required to provide additional information about the audit and the company's financial statements (an “Auditor's Discussion and Analysis”), (2) required and expanded use of emphasis paragraphs in the auditor's report, (3) auditor reporting on information outside the financial statements, and (4) clarification of certain language in the auditor's report. The PCAOB provided for a 102-day exposure period (from June 21 to September 30, 2011) for interested parties to examine and provide comments on the conceptual approaches to rulemaking that might complement the application of Section 105(c)(6). The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on the PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements. Data Availability: Information about and access to the release is available at: http://pcaobus.org/Rules/Rulemaking/Docket034/Concept_Release.pdf

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Release No. 2016-003, Proposed Auditing Standard—The Auditor's Report on an Audit of Financial Statements when the Auditor Expresses an Unqualified Opinion and Related Amendments to PCAOB Standards

2016 ◽  
Vol 11 (1) ◽  
pp. C26-C40 ◽  
Author(s):  
Marcus M. Doxey ◽  
Stephen H. Fuller ◽  
Marshall A. Geiger ◽  
Willie E. Gist ◽  
Karl E. Hackenbrack ◽  
...  
Keyword(s):  
Financial Statements ◽  
Auditor Independence ◽  
Data Availability ◽  
Financial Statement ◽  
Specific Information ◽  
Reporting Standard ◽  
The Public ◽  
Auditor Tenure ◽  
Public Company ◽  
Auditor Reporting

SUMMARY On May 11, 2016 the Public Company Accounting Oversight Board (PCAOB) issued a request for comment on Proposed Auditing Standard—The Auditor's Report on an Audit of Financial Statements when the Auditor Expresses an Unqualified Opinion and Related Amendments to PCAOB Standards, a reproposal of its August 2013 proposed auditor reporting standard. The reproposal retains the pass/fail model of the existing auditor's report while seeking to enhance the form and content of the report. The reproposal solicited public comment on the following significant changes to the existing auditor's report: (1) add a description of “critical audit matters” that provides audit-specific information about especially challenging, subjective, or complex aspects of the audit as they relate to the relevant financial statement accounts and disclosures, (2) add a statement about auditor independence and the phrase “whether due to error or fraud” when describing the auditor's responsibilities to obtain reasonable assurance about whether the financial statements are free of material misstatements, (3) add a statement related to auditor tenure, and (4) standardize the form of the auditor's report, requiring the opinion be the first section of the auditor's report and requiring section titles to guide the reader. The comment period ended on August 15, 2016. This commentary summarizes the participating committee members' views on the alternatives presented in the request for comment. Data Availability: The concept release, proposed and reproposed rules, and supplemental information are available at: http://pcaobus.org/Rules/Rulemaking/Pages/Docket034.aspx

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor's Report Thereon

2013 ◽  
Vol 7 (2) ◽  
pp. C1-C6 ◽  
Author(s):  
Nancy Chun Feng ◽  
Mikhail Pevzner ◽  
Jesse Robertson ◽  
Massood Yahya-Zadeh
Keyword(s):  
Financial Statements ◽  
Data Availability ◽  
International Standard ◽  
Related Information ◽  
Auditing Standards ◽  
Other Information

SUMMARY On November 14, 2012, the International Auditing and Assurance Standards Board (IAASB) solicited public comments on its exposure draft of the document entitled International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor's Report Thereon. The four-month comment period ended on March 14, 2013. This commentary summarizes the contributors' views on this exposure draft. Data Availability: The exposure draft and other related information are available at http://www.ifac.org/publications-resources/international-standard-auditing-isa-720-revised-auditor-s-responsibilities-re

scholarly journals Inovação nas normas internacionais do novo relatório do auditor independente

2017 ◽  
Vol 8 (1) ◽  
pp. 130
Author(s):  
Jorge Manoel ◽  
Luiz Felipe Quel
Keyword(s):  
Financial Statements ◽  
Listed Companies ◽  
Audit Report ◽  
Audit Process ◽  
Going Concern ◽  
Additional Information ◽  
Expectation Gap ◽  
Other Information ◽  
The One ◽  
Independent Audit

Historically, the independent audit profession faces a relevant challenge relating to the close of the users’ expectation gap of its report on the financial statements of companies. Throughout the years, studies of this matter were made to identify main causes. As a result, a new standard on the independent auditors’ report was internationally approved, which is applicable for financial statements of listed companies for the year ended on or after December 15, 2016 (for Brazilian listed entities, December 31st, as locally regulated). Among the main changes innovating the new independent audit report aiming to close the users’ expectation gap are: the reorganization of the paragraphs of the auditor report to reflect the importance of the subjects; the confirmation by the auditor of his independence in relation to the company he is auditing; material uncertainty related to the entity´s ability to continue operating (going concern concept) described in a specific section; the inclusion of a new paragraph for listed; companies detailing key audit matters (KAM) found during the audit (disclosure is optional for other companies); new section on other information that accompany the financial statements (for example management report) and the results of the audit procedures applied to it; the evaluation of management of its responsibility relating to the capacity of the company to continue in operation (going concern concept); a more comprehensive description of auditor’s responsibilities, including with respect to going concern. These changes compose the reply of the audit profession to close the user´s expectation gap in relation to the new auditor report. The one relating to the inclusion of the new paragraph detailing key audit matters identified during the audit process is key to respond to the users of the audit report and give them additional information for his sensitivity market investment analysis and decision making process.

scholarly journals Inovação nas normas internacionais do novo relatório do auditor independente

2017 ◽  
Vol 8 (1) ◽  
pp. 114
Author(s):  
Jorge Manoel ◽  
Luiz Felipe Quel
Keyword(s):  
Financial Statements ◽  
Listed Companies ◽  
Audit Report ◽  
Audit Process ◽  
Going Concern ◽  
Additional Information ◽  
Expectation Gap ◽  
Other Information ◽  
The One ◽  
Independent Audit

Historically, the independent audit profession faces a relevant challenge relating to the close of the users’ expectation gap of its report on the financial statements of companies. Throughout the years, studies of this matter were made to identify main causes. As a result, a new standard on the independent auditors’ report was internationally approved, which is applicable for financial statements of listed companies for the year ended on or after December 15, 2016 (for Brazilian listed entities, December 31st, as locally regulated). Among the main changes innovating the new independent audit report aiming to close the users’ expectation gap are: the reorganization of the paragraphs of the auditor report to reflect the importance of the subjects; the confirmation by the auditor of his independence in relation to the company he is auditing; material uncertainty related to the entity´s ability to continue operating (going concern concept) described in a specific section; the inclusion of a new paragraph for listed; companies detailing key audit matters (KAM) found during the audit (disclosure is optional for other companies); new section on other information that accompany the financial statements (for example management report) and the results of the audit procedures applied to it; the evaluation of management of its responsibility relating to the capacity of the company to continue in operation (going concern concept); a more comprehensive description of auditor’s responsibilities, including with respect to going concern. These changes compose the reply of the audit profession to close the user´s expectation gap in relation to the new auditor report. The one relating to the inclusion of the new paragraph detailing key audit matters identified during the audit process is key to respond to the users of the audit report and give them additional information for his sensitivity market investment analysis and decision making process.

Application of information and communication technologies in modern Russian cadastral system

2019 ◽  
Vol 944 (2) ◽  
pp. 57-63
Author(s):  
V.A. Pavlova ◽  
E.L. Uvarova
Keyword(s):  
Real Estate ◽  
Information And Communication Technologies ◽  
Communication Technologies ◽  
Software Systems ◽  
Electronic Interaction ◽  
Online Services ◽  
Global Trends ◽  
Additional Information ◽  
Information And Communication ◽  
Cadastral System

The authors describe modern trends in development of the cadastral system. The main features of the procedure of cadastral registration and software systems that act as accounting and registration of automated databases are highlighted. The technological process of maintaining the unified state register of real estate is analyzed in detail. The modern system of information electronic interaction in the real estate register is designated. The role of information and communication technologies in the Russian cadastral system is shown. The authors propose a classification of online services of Rosreestr in a number of ways. The fourth group of online services is allocated as the most promising as it provides opportunities to obtain additional information at the common activity fields of different Executive authorities. The authors conclude that changes in the cadastral system of the Russian Federation are greatly influenced by global trends which in turn are aimed at expanding the functions of the cadastre as an information basis of land management.

Developments and challenges in public sector accounting

2014 ◽  
Vol 26 (2) ◽  
pp. 345-366 ◽  
Author(s):  
Félix Madrid García
Keyword(s):  
Public Sector ◽  
Role Model ◽  
Financial Statements ◽  
The Public ◽  
Additional Information ◽  
Management Indicators ◽  
Fixed Assets ◽  
Public Sector Accounting ◽  
Accounting Convergence

What could be dubbed traditional public sector accounting was adequate for the public sector as it existed up to the late 1980s. When it became evident that this type of accounting no longer sufficed, attention turned to seeking a role model in business accounting that differed significantly from public sector accounting. Despite the move of public sector accounting towards business accounting practices, some issues still remain unresolved. The accounting treatment of fixed assets is the question which has perhaps generated the most literature. Today much ground has been covered; however, to be modern and effective, public sector accounting has still to grapple with three important challenges: standardisation and accounting convergence; consolidation of financial statements; and management indicators and additional information for disclosure.

An investigation of trust in e-banking

2015 ◽  
Vol 38 (12) ◽  
pp. 1267-1284 ◽  
Author(s):  
Chian-Son Yu ◽  
Mehdi Asgarkhani
Keyword(s):  
Significant Influence ◽  
Holistic View ◽  
Banking Services ◽  
Content Type ◽  
Empirical Results ◽  
Other Information ◽  
Information And Communication ◽  
Structural Assurance ◽  
Antecedents And Consequences ◽  
Academic Implications

Purpose – The purpose of this paper is to understand the connection among trust’s antecedents, dimensions and consequences in the context of e-banking. Design/methodology/approach – A survey of 510 and 122 respondents in Taiwan and New Zealand (NZ), respectively, was conducted. Findings – The empirical results indicate that, first, not all trusts’ precursors the authors considered have significant influence on generating consumers’ trust and, second, that influential weights of these precursors on building consumer trust vary across consumers and cultures. Meanwhile, all factors on the e-banking side hold greatly significant influence on consumers’ trust in both NZ and Taiwan cases. Research limitations/implications – Practical and academic implications culled from the empirical results are discussed, and these implications may also be applicable to other information and communication technology (ICT) solutions and innovation banking services. Practical implications – Before banks shift their focus on to trust resources of consumer side, banks are advised to create clients’ trust from e-banking side, such as situational normality and structural assurance. Originality/value – This paper takes a holistic view to investigate the links between trust’s dimensions, antecedents and consequences in a single research structure, and the implications may also be applicable to other ICT solutions and innovative banking services.

Upotreba interneta u obrazovanju odraslih: istorijsko-organizaciona perspektiva

2017 ◽  
pp. 35-52
Author(s):  
Bojan Ljuijić
Keyword(s):  
Adult Education ◽  
Information And Communication Technologies ◽  
Computer Network ◽  
Communication Technologies ◽  
The Internet ◽  
Other Information ◽  
Educational Computer ◽  
Information And Communication ◽  
Internet In Education ◽  
Historical Periods

Beside the fact that the Internet was not primarily educational network (it didn’t emerge from the intention to be systematically used in the field of education), shortly after it emerged, possibilities of its application in education were recognised. This paper is dedicated to analysis of the most important chronological moments (technological and social in the first place) that were crucial in sense of comprehensive application of the Internet in service of education in general, but also in service of adult education. Having all mentioned in focus, in more details, we analysed emergence and development of the Internet observed as educational computer network in frame of general development of information and communication technologies. While realising mentioned analysis, our focus was on four historical periods of educational computer technologies. We also intended to emphasize the activities of international institutions that followed, encouraged and supported the development of the Internet use and the use of other information and communication technologies in the field of education. According to that, we distinguished the main moments referring activities of these organisations which describe in the best manner their contributions to growing application of the Internet in education in general, but also in adult education.

The Effect of Auditor Reporting Choice and Audit Committee Oversight on Management Financial Disclosures

2021 ◽  
Author(s):  
Stephen H. Fuller ◽  
Jennifer R. Joe ◽  
Benjamin L. Luippold
Keyword(s):  
Audit Committee ◽  
Financial Statements ◽  
Audit Committees ◽  
Auditor Judgment ◽  
Joint Effects ◽  
Financial Disclosures ◽  
Auditor Reporting ◽  
Management Disclosures

We investigate the joint effects of auditor's reporting choice and audit committee effectiveness on management disclosures about complex estimates. A new PCAOB standard requires auditors to report on Critical Audit Matters (CAMs): issues "communicated or required to be communicated to the audit committee" about accounts or disclosures that (1) "are material to the financial statements" and (2) "involved especially challenging, subjective, or complex auditor judgment" (PCAOB 2017a, 11). Consistent with investor arguments, we find that audit committee effectiveness and more detailed CAM reporting encourage managers' disclosures of the risk underlying complex estimates. When the auditor's report is more informative about a complex estimate and the audit committee is more effective, management's related financial disclosures are more forthcoming. However, less informative auditor disclosures or more effective audit committees alone do not prompt greater management disclosure. Thus, expanded auditor reporting and more effective audit committees, together, can enhance the disclosures investors value.

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