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PR Newswire
30-07-2015, 04:06 PM
The auditor has less excuse from 2017, in their auditor report, which is good to OPMI... Thumb-up for the ISCA...
Enhanced auditor reporting standards to provide more transparency from 2017
30 Jul 2015 10:48
By Andrea Soh
AUDITOR reporting standards here will be enhanced from 2017 onwards, allowing investors and other stakeholders to draw deeper insights from their reports of listed entities.
In announcing two key changes on Thursday, the Institute of Singapore Chartered Accountants (ISCA) said that they would allow auditors' reports to be more transparent and contain more information on key audit matters.
Firstly, auditors will be required to communicate key audit matters in their reports on the financial statements of listed companies, beyond the traditional pass or fail audit opinion.
These may include significant risk areas in the financial statements that are most susceptible to mis-statements; the company's major transactions during the year that required extensive auditing efforts; or areas involving key management judgements and estimates, such as the valuation of investments, said the national accountancy body.
Secondly, auditors will also have an added responsibility to ensure that a company has made "adequate disclosures" in its financial statements regarding the management's judgement and assessment on going concern, or the ability of the firm to continue operations, even if circumstances do not result in a material uncertainty. Such circumstances could include, for example, the loss of a major customer being mitigated by secured orders from other customers.
This ensures more transparency on an entity's viability, which is of significant public interest, said ISCA.
...
Source: Business Times Breaking News
Enhanced auditor reporting standards to provide more transparency from 2017
30 Jul 2015 10:48
By Andrea Soh
AUDITOR reporting standards here will be enhanced from 2017 onwards, allowing investors and other stakeholders to draw deeper insights from their reports of listed entities.
In announcing two key changes on Thursday, the Institute of Singapore Chartered Accountants (ISCA) said that they would allow auditors' reports to be more transparent and contain more information on key audit matters.
Firstly, auditors will be required to communicate key audit matters in their reports on the financial statements of listed companies, beyond the traditional pass or fail audit opinion.
These may include significant risk areas in the financial statements that are most susceptible to mis-statements; the company's major transactions during the year that required extensive auditing efforts; or areas involving key management judgements and estimates, such as the valuation of investments, said the national accountancy body.
Secondly, auditors will also have an added responsibility to ensure that a company has made "adequate disclosures" in its financial statements regarding the management's judgement and assessment on going concern, or the ability of the firm to continue operations, even if circumstances do not result in a material uncertainty. Such circumstances could include, for example, the loss of a major customer being mitigated by secured orders from other customers.
This ensures more transparency on an entity's viability, which is of significant public interest, said ISCA.
...
Source: Business Times Breaking News
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