ISCA today releases the new and revised auditor reporting standards. These standards, which are based on the new and revised auditor reporting International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB), stems from the IAASB project to enhance auditor communication in response to investors’ call for the auditor's report to be more informative and relevant.
These standards are expected to reinvigorate the audit and change the manner in which auditors communicate their work in the auditor’s report. This will inevitably impact other stakeholder groups, including the preparers of the financial statements (CFOs and their finance team), the directors, the investors and the regulators.
The most significant enhancement to the auditor’s report is the new requirement for auditors of financial statements of listed entities to communicate “Key Audit Matters (KAM)” – those matters that the auditors judge to be of most significance in the current period audit, with an explanation of how they were addressed in the audit. There are also enhancements to the auditor’s attention and communication on matters related to going concern in the auditor’s report, applicable to audits of financial statements of all entities.
The new and revised auditor reporting standards and the conforming amendments are effective for audits of financial statements for periods ending on or after 15 December 2016. Early adoption is allowed.
Please click here for more information on the new and revised auditor reporting standards and the Auditor Reporting project.
ACRA and ISCA will be issuing a joint press release on the new and revised standards on 30 July 2015. Please refer to www.acra.gov.sg for more details.