Fundamental review of audit reporting launched

A "FUNDAMENTAL REVIEW" of auditor reporting has been launched by international audit standard setters.

The International Auditing and Assurance Standards Board (IAASB) has released a consultation on exploring options to enhance the quality, relevance and value of auditor reporting.

The consultation seeks to make sure that auditor reports stand up to rigour and are relevant for the future, said IAASB chairman professor Arnold Schilder.

"The IAASB believes that now is the time for a more fundamental review of auditor reporting to ensure, in the public interest, that it can meet the information needs of financial statement users in a global business environment with increasingly complex financial reporting requirements," said Schilder.

James Gunn, IAASB technical director, said: "Investors and financial analysts have signalled to us they want additional and more pertinent information for their decision making.

"The IAASB wants to better understand these views as well the views of others, including users of audited financial statements of small and medium-sized entities and public sector organisations, preparers, auditors and other key participants in the financial reporting process."

The consultation ends on 16 September.