The New Auditor's Report

Why Change the Auditor’s Report?

The auditor’s report is the key deliverable communicating the results of the audit process. Investors and other financial statement users have asked for a more informative auditor’s report—in particular for auditors to provide more relevant information to users.

Research, public consultations, and stakeholder outreach, including global roundtables, indicate that enhanced auditor reporting is critical to influencing the perceived value of the financial statement audit.

The new and revised Auditor Reporting standards are effective for audits of financial statements for periods ending on or after December 15, 2016.

Intended Benefits:

Enhanced communication between auditors and investors, as well as those charged with corporate governance
Increased user confidence in audit reports and financial statements
Increased transparency, audit quality, and enhanced information value
Increased attention by management and financial statement preparers to disclosures referencing the auditor's report
Renewed auditor focus on matters to be reported that could result in an increase in professional skepticism
Enhanced financial reporting in the public interest

WHAT'S CHANGED?

ISA 700 (Revised)
ISA 701 (New)
ISA 570 (Revised)
ISA 705 (Revised)
ISA 706 (Revised)
ISA 260 (Revised)
Conforming amendments to several other ISAs
ISA 720 (Revised)

WHAT CAN YOU DO?

Effective implementation is critical to the success of the new and revised Auditor Reporting standards. You--investors, regulators, audit oversight bodies, audit committees and others--have an important role in effecting the change you want to see in auditor reporting.

Join the IAASB in promoting the new and revised Auditor Reporting standards. Engage in dialogue with us, and among yourselves about what's new in auditor reporting today.