Short reports binned.
Auditors could soon be expected to supply a lengthy narrative report on companies’ internal control systems instead of a ‘short-form’ report. The Auditing Practices Board issued a briefing paper in a bid to encourage discussion in this area of growing importance on Monday.
APB chairman Ian Plaistowe said: ‘The APB believes that a narrative report is necessary in order to communicate effectively the various judgements made by practitioners. Owing to the absence of generally accepted criteria available to practitioners a standardised short-form report would be likely to lead to misunderstandings.’
For another APB story see www.accountancyage.com/practice/1122437
– New legal requirements on charities have this month led to the publication of a consultation draft on guidance for auditing charities.
The paper issued by the Auditing Practices Board is intended to clarify auditors’ responsibilities for communicating with the Charity Commission.
The draft includes examples of what should be reported.
Ian Plaistowe, APB chairman, said: ‘Auditors need to have a clear understanding of the legal environment relevant to their charity clients as well as their duties to report to the Charity Commission.’
Comments should be submitted before 28 September 2001.
For another charities story see www.accountancyage.com/Practice/1120909
– Bob Herz has been appointed chairman of a new global audit committee that plans to ensure consistent audits across the globe.
Herz works for PricewaterhouseCoopers in North America and is in charge of professional, technical, risk and quality. He is also a part-time member of the new International Accounting Standards Board.
The Transnational Auditors Committee is the executive committee of the Forum of Firms officially formed in January this year to improve the consistency and quality of audit and financial reporting worldwide.
More details at www.ifac.org/TransnationalAudits/index.tmpl.