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 IAASB • 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 entities • Going concern statements • References to ethical standards Key Audit Matters • Mandatory for entities within the public sector? • 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 concern • 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 changes? FAS ”Expert Team” to deal with Auditor Reporting • 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 members?