Multiple Audit Standards Standard Setting â€Myassignmenthelp.Com

Question: Discus About The Multiple Audit Standards Standard Setting? Answer: Introducation The financial statement of the company should be prepared to keep in mind that they give a true and fair view of the financial position of the company(Deloitte, 2016). The IAASB and PCAOB provide the different format of audit reports. The matters presented in the audit report format provided by IAASB and PACOB are as follows: IAASB PACOB The new audit report will be effective from the calendar year 2016 No effective date has been provided by the authorities. All companies are covered under this new audit report format. This audit report format will cover only public companies. The concept of going concern gets affected by the new audit report format. If the company has undergone any major event due to which the future of the company is uncertain than the going concern of the company will be re-evaluated. This audit report format does not affect the going concern principle of the company. The format of the audit report is laid down by the IAASB. The PACOB has not given any specific format of audit report. The audit report as per IAASB should include the ethical requirement such as a certificate of the expert whose work is used in the audit and certificate of auditors independence (Cullinan, et. al., 2012). List of any other statement to be attached to the report is not mentioned by the PACOB. Despite many differences, there are certain similarities in the New Audit Report of the IAASB and PACOB. The Key Audit Matters and the Critical Audit Matters are same in practical meaning but reported with a different name in the audit reports. In both, the report the opinion section comes first followed by the basis of opinion in the second paragraph. Both the audit report format contains a separate section for clearing the fact the preparation of the financial statement is the responsibility of those charged with governance and the duty of the auditor is to give an opinion. As per the IAASB standards, the KAM is required to be stated by the auditor while auditing the financial statement of the public listed companies. The entities other than public entities do not contain any such requirement to state the KAM for their Audit Report. The changes implemented the presentation of the Audit Report by the IAASB and PACOB is done with a view to achieving the objective behind the preparation of the audit report by the auditor. The new audit report format provides the users with more detailed information about the company for making its decision(IAASB, 2016). The new format of the Audit Report, list the Key Audit Matters and Critically Audit Matters in its Report differently which are very important for the users as they are the material matters of the financial statement of the company (Burns and Fogarty, 2010). Further, if there have been any major events in the financial year which can affect the future existence of the company that the going concern concept can be ignored by the management of the company. Therefore it can be said that the new format of the audit report is providing better and brief opening about the statement of the company whose audit report is prepared and achieving the objective behind the preparation of audit report. The audit reporting is the presentation of the audit conducted by the auditor on the financial statement of the company. The audit report gives an opinion about the financial statement of the company based on the sufficient evidence obtained by auditor after applying appropriate procedure. The new audit report will cover the material points of the audit report and highlight it so that it can be easily identified by the users. The new Audit Report format provides the necessary documents to be attached to the audit report for a better understanding of the Audit. The relevant authorities present the audit report format keeping in mind that the important information should be presented first. The audit report should be prepared by the auditor with due diligence and by applying professional skills. The audit report gives the opinion to the users of the report about the true and fair view of the financial position of the company and its affairs(IFAC, 2017). Impacts of new Audit Reporting requirements on audit practise: New audit reporting requirement affects Going concern disclosures in the auditors report. New audit reporting requirement also affects TCWG and Management of the company in various ways i.e. strong communication between TCWG and the auditors on the KAM and increase in the attention by TCWG to the financial statement disclosures referred in the report of the auditor. References Burns, J. and Fogarty, J., 2010. Approaches to auditing standards and their possible impact on auditor behavior. International Journal of Disclosure and Governance, 7(4), pp.310-319. Cullinan, C.P., Earley, C.E. and Roush, P.B., 2012. Multiple auditing standards and standard setting: Implications for practice and education. Current Issues in Auditing, 7(1), pp.C1-C10. Deloitte, 2016. IAASB publishes comparison with PCAOB auditor reporting proposal. [Online] Available at: https://www.iasplus.com/en-us/news/2016/05/iaasb-pcaob-compare-report [Accessed 21 September 2017]. IAASB, 2016. The New Auditors Report: A Comparison between the ISAs and the US PCAOB Reproposal. [Online] Available at: https://www.shinnihon.or.jp/shinnihon-library/publications/issue/us/gaap-weekly-update/pdf/GAAP-2016-06-14-01.pdf [Accessed 21 September 2017]. IFAC, 2017. IAASB Welcomes PCAOB's New Enhanced Auditor Reporting Standard. [Online] Available at: https://www.ifac.org/news-events/2017-08/iaasb-welcomes-pcaobs-new-enhanced-auditor-reporting-standard [Accessed 21 September 2017].