Financial Statements And The Audit Report

1719 WordsOct 23, 20147 Pages
Introduction Investors and other financial statement users receive information regarding an auditor’s work, concerning a company’s financial statements, through an audit report. In the United States, the audit report has changed little since the 1940s (PCAOB 2013b). Currently it, “identifies the financial statements that were audited, the scope and nature of the audit, the general responsibilities of the auditor and management, and presents the auditor 's opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the company in conformity with the applicable financial reporting framework” (Advisory Committee on the Auditing Profession 2008).…show more content…
They also issued release 2013-009 on December 4, 2013, which proposed amendments to auditing standards. The amendments concern further disclosure of those who undertook the audit (PCAOB 2013a). The standard and amendments are known respectively as The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion and Improving the Transparency of Audit: Proposed Amendments to PCAOB Auditing Standards to Provide Disclosure in the Auditor’s Report of Certain Participants in the Audit (PCAOB 2013b; PCAOB 2013a). Release 2013-005 The PCAOB proposed auditing standard, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, as a result of recent outreach projects concerning the usefulness of the audit report (PCAOB 2013b). Through these projects, the PCAOB discovered that investors and other financial statement users view current audit reports as lacking in significant information. The PCAOB’s surveys suggest that investors and other financial statement users would like information on the most significant matters the auditor addressed to be included in the audit report. More specifically, they desire information that the auditor is required to communicate, to the
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