30 Jul 2012

Extended auditor report

Clarity and transparency lie at the heart of International Auditing and Assurance Standards Board (IAASB) plans for an extended auditor’s report. It calls for a commentary of additional information highlighting issues that the auditor judges most important in helping users understand the audit or audited financial statements

The auditors would have to judge the appropriateness of managers’ use of the going concern assumption in preparing financial statements, stating whether any material uncertainties have been identified.

And they would need to draw users’ attention to any material inconsistencies that may occur between the audited financial statements and other information.

IAASB ( has issued a consultation document and the deadline for responses is 8 October.