The auditor reporting standards are effective from December 15, 2016.
- A new section in the auditor’s report to communicate key audit matters (KAM) —those matters that were of most significance in the audit.
- Disclosure of the engagement partner’s name.
- Opinion section required to be presented first.
- Enhanced auditor reporting on going concern.
- Enhance communication between auditors and investors, as well as those charged with corporate governance.
- Increase user confidence in audit reports and financial statements.
- Increase transparency, audit quality, and enhanced information value.
- Increase attention by management and financial statement preparers to disclosures referencing the auditor's report.
- Renew auditor focus on matters to be reported that could result in an increase in professional skepticism.
- Enhance financial reporting in the public interest.
Implementation Material and Guidance
- Basis for Conclusions: Revised Auditor Reporting Standards
- Fact Sheet: Revised Auditor Reporting Standards
- At a Glance: Revised Auditor Reporting Standards
- Auditor Reporting – Key Audit Matters
- Determining and Communicating Key Audit Matters
- Auditor Reporting on Going Concern
- More Informative Auditor’s Reports - What Audit Committees and Finance Executives Need to Know
- New Auditor Report – Comparison Between the ISAs and the PCAOB
- New Auditor Report: Q & A
- Illustrative Key Audit Matters
- FAQ - Reporting Going Concern Matters in the Auditor's Report
Post-Implementation Review Materials
When the revised standards were issued in 2015, the IAASB also committed to a post-implementation review. The review included a stakeholder survey, a roundtable discussion held in September 2020, targeted outreach with stakeholder groups that engage with auditors and/or use auditor reports, and an academic research review. The survey, roundtable, and related outreach solicited perspectives on implementation and specific aspects of the revised auditor reporting standards, focusing on three key areas: key audit matters, going concern and other information in the auditor’s report.
The review indicated broad support for the revised auditor reporting standards, and the resulting auditor’s report, and indicated that the standards have met the IAASB’s intended objectives.
The IAASB’s stakeholder feedback statement summarizes key themes and views shared throughout the review process.