Proposed Changes To Audit Reports.

• Author: Heffes, Ellen M.
• Position: Brief Article

Changes to the standard on audit reports requiring auditors to clearly state the financial reporting framework being used to prepare the financial statements have been proposed by the International Federation of Accountants. IFAC's International Auditing Practices Committee (IAPC) has recommended these revisions to International Standard on Auditing (ISA) 700, The Auditor's Report on Financial Statements, so that users may better understand the context for the auditor's opinion.

"Globalization of markets has meant that financial statements are increasingly used by foreign investors and analysts, hence clear labeling of the particular accounting and auditing frameworks is essential,"...