Auditors are Bearing Great Burden of Reading Annual Reports after Revised Auditing Standard
A revised International Auditing Standard has been released by the International Auditing and Assurance Standards Board that supports auditors during auditing to give great attention on company annual report, because it gives serious information to the auditor that will eventually helpful for the general public.
The ISA 720 has been revised, it tells how much the responsibility and involvement of auditor should be with other information, like, audited financial statements, and financial and non-financial information of segments of company including in annual reports.
Prof. Arnold Schilder, chairman of IAASB department said, “The annual report is very important and serious document for the stakeholders. So, it is very critical for an auditor by using the knowledge of audit that he obtained in the audit, carries out a smart read of an annual report also undertakes different procedures to confirm that annual report is consistent with the audited financial documents.”
The IAASB revised auditing standard also contains the new requirements of reporting for an auditor for balancing these changes that are issued earlier in this year. This revised standard will be efficient for financial statements’ auditing for periods ending on or after this year.
The standard also helpful for an auditor for facing the challenges that may arise when some or all the other information related to annual report as of the date of auditor’s report, is not available, and suggested extra communications in auditor’s report for scheduled units in these situations.
The personnel organizes basis for conclusions, that elaborates the IAASB’s justification for its judgments, and the glance document gives details about the important modifications from the existing ISA, are also present.