Enhancing the auditor's report : to what extent is there support for the IAASB's proposed changes?

Simnett, Roger & Huggins, Anna (2014) Enhancing the auditor's report : to what extent is there support for the IAASB's proposed changes? Accounting Horizons, 28(4), pp. 719-747.

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This article outlines proposed reforms to auditor reporting currently being considered by the International Auditing and Assurance Standards Board (IAASB), and other key national and transnational standard-setters and regulatory bodies. It adds to recent academic contributions on reforming the auditor’s report by analyzing the 165 stakeholder responses to the IAASB’s 2012 Invitation to Comment: Improving the Auditor’s Report to determine levels of support for the IAASB’s proposed reforms, and the differences, if any, between the views of various respondents based on stakeholder groups (e.g. audit and assurance firms, users, preparers, regulators, etc.) and regional classifications. Guided by insights from communication theory, our results show the levels of stakeholder support for the IAASB’s proposed reforms addressing auditors’ expectations, information and communication gaps are mixed. The strongest overall support was for enhanced auditor reporting on other information attached to, or intended to be read with, the financial statements, and the least supported initiative was including additional information in the auditor’s report about the auditor’s judgements and processes. Whilst overall there is generally consensus across both stakeholder groups and regions concerning the various questions investigated, we highlight where statistically significant differences between groups do exist. Notably, North American respondents were less likely to support a number of the IAASB’s proposed reforms than their counterparts from other regions.

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ID Code: 82047
Item Type: Journal Article
Refereed: Yes
Keywords: auditor reporting, International Auditing and Assurance Standards Board, expectations gap, communication theory, information gap
DOI: 10.2308/acch-50791
ISSN: 1558-7975
Divisions: Current > QUT Faculties and Divisions > Faculty of Law
Current > Schools > School of Law
Copyright Owner: Copyright 2014 American Accounting Association
Deposited On: 27 Feb 2015 00:21
Last Modified: 02 Mar 2015 17:46

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