Auditor Reporting ppt

Agenda item 8
Auditor Reporting
Auditor Reporting
• Purpose with this agenda item:
• To present the major changes in the
Auditors Report as suggested by the
• To discuss the relevance of suggested
changes to the Auditors Report for the
public sector and to have some early
indications on FAS members views
• To have an understanding of the FAS
members interest to work with the
Expert Team to develop/revise the
Practice Notes
Auditor Reporting
• Changes that may be of special public sector
relevance to discuss;
• Key Audit Matters for public sector
• Going concern statements
• References to ethical standards
Key Audit Matters
• Mandatory for entities within the public
• The members views of making separate
agreements to apply ISA 701?
• What is the significance in the public sector
(given our extended reporting opportunities)
• Public sector audit reports often focus on
findings- are there any gain in reporting on
audit matters as well?
Going Concern Statements
• Relevance going concern concept heavily
discussed in the public sector
• Including a statement in the report
highlights this discussion
• ISSAI 200 do include arguments on going
• What is the view of FAS members?
Reference to Ethical Standards
• Explicit statement that the auditor is
independent and reference to the Ethical
Standards that have been followed
• Most SAIs apply ISSAI 30 (Code of Ethics),
as adopted in their environment
• Are such statements relevant for the public
sector given our constitutional role?
Other suggested changes that need public
sector specific attention
• Are there any other areas where you believe
that the public sector may need specific
guidance in relation to the suggested
FAS ”Expert Team” to deal with Auditor
• Project will include;
• New Practice Note to ISA 701
• Revised Practice Notes to ISA 700, 705,
706 , 570 and 260
• Conforming amendments to other ISAs
needs to be considered as well
• Project to be carried out by:
• Group of FAS members?
• Expert group from other INTOSAI