New style audit reports are here
The new and revised auditing standards are effective for periods ending on or after 15 December 2016 which means that all audit reports for 31 December 2016 year ends will include the new format audit report.
In summary the key changes are:
- Key audit matters will be included for listed entities to provide information on the matters of most significance in the audit of the current period financial report
- The audit opinion being moved to the beginning of the report
- A revised approach to reporting on going concern, including a specific paragraph where there is a material uncertainty identified, and an explicit statement by management of their responsibility
- Increased and enhanced information on the auditors responsibilities, and
- A new section to cover the auditor’s work in relation to other information in the annual report.
To learn more about navigating your auditor reporting journey, read our interactive global publication where we outline how the changes to auditor reporting can improve the information provided to you as part of your audit. In whatever enterprise you operate - from start-up to multi-national corporation – or whether you fulfil the role of ‘management’ or ‘those charged with governance’, auditor reporting changes will affect the style, format and content of the auditor’s report provided to you.
We have also seen a number of early adopters of the new standards in both Australia and New Zealand. To learn about the early adopters, refer to the ‘Enhanced auditor reporting – one year on’ publication prepared by Chartered Accountants Australia and New Zealand which provides an overview of the early adopters with a focus on the key audit matters reported.
For more information on the new format audit reports or to find out how it will impact your report, please contact your engagement partner.