The International Auditing and Assurance Standards Board has released an exposure draft proposing changes to how auditors should handle engagements reporting on summary financial statements.
International Standard on Auditing 810, Engagements to Report on Summary Financial Statements, deals with the auditor’s responsibilities relating to an engagement to report on summary financial statements derived from financial statements audited in accordance with ISAs by that same auditor. The IAASB, which operates under the auspices of the International Federation of Accountants, is proposing limited conforming amendments to ISA 810 as a result of the issuance of its new and revised Auditor Reporting standards, which address auditor reporting on general purpose financial statements.
“In light of its overall efforts to enhance auditor reporting, the IAASB believes it is also in the public interest to provide users of summary financial statements with greater transparency in circumstances when additional information, such as key audit matters, are communicated in the related auditor’s report on the audited financial statements,” said IAASB chairman Arnold Schilder in a statement. “The proposed changes to ISA 810 represent a balanced approach considering the objective of an engagement to report on summary financial statements and the report that is required to be issued.”
The IAASB issued its proposals with a 90-day comment period in order to finalize them on a timely basis and align the effective date of ISA 810 (Revised) with the effective date of the new and Revised Auditor Reporting Standards (i.e., for audits of financial statements for periods ending on or after Dec. 15, 2016).
“The board’s approach also recognizes that the manner in which summary financial statements are prepared and presented may vary on a national basis depending on the criteria used, and therefore national auditing standard setters may further tailor ISA 810 in their jurisdictions,” said IAASB technical director Kathleen Healy. “The board is therefore particularly interested in hearing from stakeholders in those jurisdictions where ISA 810 reports are frequently issued to understand whether its proposed changes will be capable of being implemented and would be expected to benefit users of these reports.”
The IAASB is inviting all stakeholders to respond to the exposure draft, which includes specific questions for respondents on key aspects of the proposals and highlights areas of focus for various stakeholders in responding to the document. To access the exposure draft and submit a comment, visit the IAASB’s Web site at www.iaasb.org. Comments are due Nov. 2, 2015.
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