Weblinks add meaning to audit reports

Boiler-plate wording in auditor reports is to be replaced with a weblink.

The Auditing Practices Board is reviewing audit statements in a bid to make them more meaningful.

The current report is thought to be of little value to investors since it contains unnecessary and lengthy descriptions of the responsibilities of directors and auditors and an explanation of what an audit involves.

APB technical director Jon Grant said that the board is proposing to exclude this information from published auditor reports and to instead reference a link to the APB website with these details in full.

The APB is also set to consult on what additional information could be part of the report.

According to Grant, commentators have expressed an interest in auditors highlighting important risks and uncertainties that they are aware of that may or may not be disclosed in the annual report, as well as information on the issues that the auditors discuss with audit committee.

‘Work needs to be undertaken to establish whether there is consensus as to what sort of additional information would be of assistance to investors and then to explore the feasibility of providing it,’ said Grant.