This update was first published in the April 2012 UK edition of Accounting and Business magazine.
The UK Auditing Practices Board (APB) has issued a consultation paper proposing revisions to the clarified International Standards on Auditing (ISAs)(UK and Ireland) that deal with audit reporting, namely:
- 700, The Auditor’s Report on Financial Statements (revised).
- 705, Modifications to the Opinion in the Independent Auditor’s Report.
- 706, Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.
The revisions are intended to enable the clarified reporting ISAs (UK and Ireland) to be used by auditors in the Republic of Ireland (ROI). Currently in the ROI an earlier version of ISA (UK and Ireland) 700 applies and ISAs (UK and Ireland) 705 and 706 are not in effect at all. The proposed revision would therefore result in significant changes for audit reports in the ROI.
An illustrative example of an Irish auditor’s report, which follows the requirements of ISA (UK and Ireland) 700, is set out in the paper. The APB is planning to issue a compendium bulletin of Irish auditors’ reports at the same time as it issues final versions of the ISAs (UK and Ireland).
The consultation period ends on 31 May 2012.
The proposed changes should not affect auditors’ reports issued by UK auditors that follow the APB’s illustrative examples in Bulletin 2010/2 (Revised).
Glenn Collins, head of technical advisory, ACCA UK