Key Changes To The Auditor's Report On Financial Statements

The auditor's report on the financial statements, especially those of listed companies, is going to look different and be substantially longer from December 2016 onwards. These substantial changes to the auditor's report will not only affect auditors, but will also require additional communication with and the direct involvement of management and those charged with governance ("TCWG").

In January 2015, the International Auditing and Assurance Standards Board ("IAASB") issued a set of new and revised International Standards on Auditing ("ISAs") on Auditor Reporting, which will be effective for audits of financial statements for periods ending on or after 15 December 2016. This was in response to calls by investors and other users of financial statements for enhanced auditor's reports that are more informative about the audit that was performed.