Radical and Important' Audit Standards Welcomed by ACCA

A large number of new and important changes for the improvement of audit reporting as well as audit transparency have been welcomed by the Association of Chartered Certified Accountants (ACCA).

The changes to the International Standards on Auditing (ISAs) by the IAASB are aimed on ensuring that the relevant and fundamental audit matters have been suitably addressed and conveyed to the users of financial statements. The improvement in audit reporting and its transparency is considered as critical by the ACCA for the value of future audits.

The final changes and consultations of IAASB about these advancements have been welcomed and entertained by Global Forum of Audit and Assurance of ACCA.

ACCA increases the confidence of the public about financial reporting and so it is believed that audit carries significant value in the society, mentioned by Robert Stenhouse, the chair of Global Forum of Audit and Assurance. The efficient capital use and allocation is facilitated in universal markets. The audit benefits are focused on non-profit sectors and public at large. The finalized standards are clear and consistent.

Besides, the new standards create great opportunities for the auditors; they can find these new standards more challenging at the time. This is a long term and important project which brings major modifications to the audit reporting rather than just codifying the current best practice. The newly finalized standards provide room for auditors to use their own judgment to modify their individual clients’ reports in order to ensure emergence of best practice. The way of the auditors communicating the work they have performed is fundamental for the purpose of understanding the work and its resulting value.

The Outstanding Industry Contribution Award of the British Accountancy Awards has been won by Jimmy Daboo, an auditor of KPMG, for adding transparency to the biggest companies audit reports.