ACCA welcomes the opportunity to provide feedback on the consultation Enhancing Auditor’s Reports – Proposed Revisions to UK Auditor Reporting Standards.

ACCA is very supportive of the stated objectives of these proposed revisions as outlined in the consultation i.e. to simplify and declutter the auditor’s report and, increase the quantity of useful information for users of the auditor’s report. Any updates to the auditor’s report that enhance transparency, promote decision useful information and contribute to the user’s understanding of the audit are welcomed. As there is a broad spectrum of users of an auditor’s report clarity and conciseness are key, and we support any measures reducing generic boilerplate text. At the same time proposed changes must not mislead the user or negatively impact the expectation gap. Balancing these important factors is essential when considering any amendments.

While the proposed changes to the auditor’s report may not require the performance of additional audit procedures additional effort will be required in drafting the auditor’s opinion. Risk management procedures will be more time consuming as auditors seek to ensure what is reflected in the auditor’s report is appropriate. For more sensitive changes, careful communication with clients will be required creating an additional relationship management effort.

To be clear, that is not to suggest that the above challenges should prevent changes leading to an informational improvement for the users of auditor’s reports, rather to acknowledge the anticipated additional effort that will be required.

Additionally, communication with stakeholders on implemented changes is key to ensuring changes are properly understood and to reduce the likelihood of any inadvertent negative impact on the expectation gap. 

To read our comments in full, please download the document found on this page.