The most important information in the auditors responsibilities section includes:
Background of the IAASB ProjectThe auditor’s report is the auditor’s primary means of communication with an entity’s stakeholders. Hence, the report has to be meaningful and deliver value for the stakeholders. While the current binary auditor's report is valued, many stakeholders perceive that it could be more informative. Users of audited financial statements have been calling for more pertinent information for their decision-making in today’s global business environment with increasingly complex financial reporting requirements. The global financial crisis has also triggered renewed focus of users, in particular institutional investors and financial analysts, to want to know more about individual audits and to gain further insights into the audited entity and its financial statements. Change, therefore, is essential. Show
The international standard setter, the International Auditing and Assurance Standards Board (IAASB) understands and embraces the significant need for, and importance of, international leadership on the topic of Auditor Reporting. In June 2012, the IAASB issued an Invitation to Comment (ITC) on Improving the Auditor’s Report to seek feedback on the IAASB’s indicative proposed direction for the future auditor’s report. The IAASB considered the feedback received and in July 2013, issued its Exposure Draft (ED), Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing, which included 5 proposed revised standards and 1 proposed new standard for the auditing profession. Following consultation and rigorous due process, the IAASB issued the new and revised auditor reporting standards in January 2015, which are effective for audits of financial statements for periods ending on or after 15 December 2016. Why it affects SingaporeThe IAASB project to improve auditor reporting is a key international development which has far-reaching implications globally. As Singapore adopts the international auditing and assurance standards issued by the IAASB, stakeholders in Singapore are also impacted by the changes. As part of the due process, a public consultation was held in May 2015 to solicit feedback on the local adaption of the IAASB standards. Respondents to the Exposure Draft include the preparers of financial statements, public accounting firms as well as representatives from financial institutions and insurance companies. With rigorous due process and due consideration of the feedback received, ISCA has, following approval from the ACRA's Public Accountants Oversight Committee (PAOC), issued the new and revised auditor reporting standards on 30 July 2015. The new and revised standards and the related conforming amendments are effective for audits of financial statements for periods ending on or after 15 December 2016. Early adoption is allowed. New and Revised Auditor Reporting Standards
Conforming Amendments In addition, conforming amendments have been made to the following SSAs and locally developed pronouncements:
Please click here to access the ISCA auditing and assurance pronouncements. Key Enhancements to the Auditor's Report
Key Localisation AmendmentsThe SSAs are generally in line with the IAASB standards, with amendments made for the purpose of local adoption in Singapore. The key localisation amendments (differences between the ISAs and the SSAs) are as follows: 1. "Auditor's Responsibilities" Section SSA 700 (Revised) requires the full description of the auditor’s responsibilities to be included within this section and does not provide the option allowed under ISA 700 (Revised) for part of the description to be included within an appendix or on a website of an appropriate authority. ISCA believes that the description is important, and it is essential for users to fully understand the auditor’s responsibilities by reading the auditor’s report itself. 2. “Responsibilities of Management and [Those Charged with Governance (TCWG)] for the Financial Statements” Section Amendments have been made to the description of responsibilities for internal control and director’s responsibilities for overseeing the financial reporting process for illustrative auditor’s reports of Singapore companies to reflect the intent of the Companies Act. 3. Ethical Requirements for Public Accountants A public accountant is required to comply with the ACRA Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities and the relevant ethical requirements. The ethical requirements that are relevant to the audit of the financial statements in Singapore include the ACRA’s PAOC’s pronouncements on all professional matters and professional ethics issued from time to time; and the pronouncements on professional matters and professional ethics of any professional accountancy body adopted by the PAOC, for example, Ethics Pronouncement (EP) 200, Anti-Money Laundering and Countering the Financing of Terrorism – Requirements and Guidelines for Professional Accountants in Singapore. A public accountant should hence make reference to the ACRA Code and the ethical requirements that are relevant to the audit of the financial statements in Singapore, in the auditor's report. The illustrative reports in SSA 700 (Revised) provide the appropriate wordings. What is the most important part of an audit?Evaluating internal controls
This is arguably the most important part of an audit and where many organizations can find a significant amount of value from having an audit conducted.
What are the responsibilities of an auditors?The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud.
What are the three key responsibilities of an auditor?Perform reconciliations of financial and operating information. Monitor compliance with industry standards, laws, and guidelines. Evaluate whether processes and procedures are functioning properly.
What are the 5 more important duties of an auditor?Duties of an Auditor. Provide an Audit Report. ... . Make Proper Enquiry. ... . Assist in Branch Audit. ... . Compliance With Auditing Standards. ... . Reporting of Frauds. ... . Provide Assistance in Investigation. ... . Adhere Principles of Auditing. ... . Provide Negative Opinion.. |