New Audit Standards Welcomed by ACCA; Global Professional Body Encourages Auditors to be Bold and Use Standards to Enhance Transparency and Showcase Innovation

The Association of Chartered Certified Accountants (ACCA) has appreciated the newly made changes to the International Accounting Standards (ISAs) by IASB.

The purpose of the revision in ISAs is to provide final users with clear understanding and explanation of relevant and basic audit issues. ACCA considers this development in auditor’s report to be of great importance for future audits’ value, increasing transparency and introducing new approaches towards reporting.

The Global Forum for Audit and Assurance of ACCA has given its response over the consultations of IAASB on these modifications over the past few years. The global accounting body is pleased to know that the final result has successfully increased the relevance of audit reports to investors. In current times where the value of audit is constantly being questioned, ACCA considers these changes timely.

On behalf of ACCA, the Chair of ACCA’s Global Forum for Audit and Assurance, Robert Stenhouse commented that audit is very important to the society as it serves public value by enhancing the credibility of financial reporting. It enables efficient use and allocation of capital in global capital markets. The public and not for profit sector also benefits from audit. The new standards offer more clarity and consistency.

Mr. Stenhouse also said that as a global accounting body ACCA taken proactive and keen interest in the formulation of new auditor reporting standards but its role does not end here. He commented that ACCA would encourage its members to effectively implement these standards. He also mentioned that the National standard setters have an important part to play by encouraging the use of these standards locally.

Towards the end, Mr. Stenhouse said that although these new standards are more challenging for auditors but this also provides a great opportunity. This long running project has brought some essential revisions to audit reporting. These allow auditors to tailor the audit reports as per circumstances of individual clients using their best judgments. The manner in which an auditor communicates its work is crucial in understanding audit and its value.