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The New Auditor's Report
Brief for Boards and Committees
The Indian auditing stadards, consistent with the International Standards on Auditing, has made substantial changes in the reporting requirements by auditors that will be effective for audits of financial statements for periods beginning on or after 1 April 2017.
What has changed?
There will now be a paradigm shift in the content of the auditor’s report for listed entities. This has been introduced through a new auditing standard that requires inclusion of a separate section on ‘Key audit matters’ in audit reports. Key audit matters are those matters that, in the auditor’s professional judgement, are of most significance in the audit of the financial statements of the current period. Key audit matters are selected from matters communicated with those charged with governance.
Why the change?
Enhanced transparency to facilitate users of financial statements in understanding significant judgements made by the auditor in forming his opinion on the financial statements, since they are directly related to areas of significant management judgement in preparing the financial statements.
Download the report to learn more, and view the infpographic for key insights: