Audit has an important place in society, says ACCA

The IAASB’s new revisions to International Auditing Standards (ISAs) are welcomed by ACCA (the Association of Chartered Certified Accountants).

The revisions to ISAs aim to ensure fundamental and relevant audit matters are explained and communicated to the end user clearly. ACCA sees this improvement in auditor’s reports as crucial to the future value of audits, enhancing both transparency around the audit and innovation in audit reporting.

Over the last few years, ACCA’s Global Forum for Audit and Assurance has responded to the IAASB’s consultations on this body of work, and welcomes the final revisions as increasing the relevance to investors of independent audit reports. ACCA believes the revisions are timely as the value of audit continues to be challenged.

Robert Stenhouse Chair of ACCA’s Global Forum for Audit and Assurance, says: “ACCA believes audit has a very important place in society. It provides public value through increasing confidence in financial reporting. For global capital markets this facilitates the efficient allocation and use of capital. The benefits of audit are also strongly felt in the public and not for profit sectors. The new standards are consistent and clear, and above all relevant across a very wide user base.”

Robert Stenhouse continues: “As a global professional body, ACCA has taken a keen and proactive interest in the developments of these new auditor reporting standards. But our work does not stop here. We will continue to champion their effective implementation and encourage our members to be bold in their use of the new standards to showcase the fantastic work they do. National standard setters also have an important role to help balance prescription and flexibility by supporting consistency within the local environment without stifling innovation.”

Robert Stenhouse concludes: “These new standards are more challenging for the auditor, but with this comes a great opportunity. This has been an important and long-running project that does not just codify existing best practice, but makes radical changes to audit reporting. The new standards allow scope for auditor judgment to tailor reports to individual client circumstances so that best practice can emerge. How auditors communicate their work is fundamental to understanding the audit and the value it brings.”