ACCA - The global body for professional accountants
There was a first exposure draft in 2012 and while the current exposure draft has eliminated many of the problems identified then by ACCA, there are still complex technical issues to be overcome. Our response not only identifies these issues but proposes practical solutions
—David York, head of auditing practice, ACCA

ACCA responds to a proposed auditing standard that investors should welcome

ACCA (the Association of Chartered Certified Accountants) says that proposals to revise International Standard on Auditing (ISA) 720 are an appropriate response to investor calls for auditors to deliver more informative reporting.

ACCA welcomed the proposals in its response to proposed ISA 720 (Revised) The Auditor’s Responsibilities Relating to Other Information.  The ACCA Global Forum for Audit and Assurance debated the proposals and the views of its members, who are based in major capital markets around the world, were encapsulated in the ACCA response.

David York, ACCA head of auditing practice, said: 'The glossy annual report of a large listed company now typically contains far more information than is in the financial statements. The 'front end' has doubled in size over the last two decades and investors want auditors to report on it; to deliver transparency and value from their financial statement audit.

'But it is not a matter of extending the scope of the audit to cover information such as a company's strategic report. The cost of that would be prohibitive. Instead the proposals call for explicit reporting based on auditors reading and considering this 'other information'; which is something they do as a matter of course under existing requirements of professional ethics.'

David York continued: 'The standard setter, the International Auditing and Assurance Standards Board's (IAASB) has found it very difficult to put together a standard that supports such reporting but does not mislead investors about the level of assurance over 'other information'. 

'There was a first exposure draft in 2012 and while the current exposure draft has eliminated many of the problems identified then by ACCA, there are still complex technical issues to be overcome. Our response not only identifies these issues but proposes practical solutions.'

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For more information, please contact:

Helen Thompson, ACCA Newsroom
tel: + 44 (0) 207 059 5759
mob: + 44 (0) 7725 498654
Twitter @ACCANews
helen.thompson@accaglobal.com

Notes to Editors

  1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. 
  2. We support our 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence. 
  3. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.