Agenda item 8

Auditor Reporting

Auditor Reporting

• Purpose with this agenda item:• To present the major changes in the Auditors

Report as suggested by the IAASB• To discuss the relevance of suggested

changes to the Auditors Report for the public sector and to have some early indications on FAS members views

• To have an understanding of the FAS members interest to work with the Expert Team to develop/revise the Practice Notes

Auditor Reporting

• Changes that may be of special public sector relevance to discuss;• Key Audit Matters for public sector

entities • Going concern statements• References to ethical standards

Key Audit Matters

• Mandatory for entities within the public sector?

• The members views of making separate agreements to apply ISA 701?

• What is the significance in the public sector (given our extended reporting opportunities)

• Public sector audit reports often focus on findings- are there any gain in reporting on audit matters as well?

Going Concern Statements

• Relevance going concern concept heavily discussed in the public sector

• Including a statement in the report highlights this discussion

• ISSAI 200 do include arguments on going concern

• What is the view of FAS members?

Reference to Ethical Standards

• Explicit statement that the auditor is independent and reference to the Ethical Standards that have been followed

• Most SAIs apply ISSAI 30 (Code of Ethics), as adopted in their environment

• Are such statements relevant for the public sector given our constitutional role?

Other suggested changes that need public sector specific attention

• Are there any other areas where you believe that the public sector may need specific guidance in relation to the suggested changes?

FAS ”Expert Team” to deal with Auditor Reporting• Project will include;

• New Practice Note to ISA 701• Revised Practice Notes to ISA 700, 705, 706

, 570 and 260• Conforming amendments to other ISAs

needs to be considered as well• Project to be carried out by:

• Group of FAS members?• Expert group from other INTOSAI members?