Proposed Changes To Audit Reports.Changes to the standard on audit reports requiring auditors to clearly state the financial reporting framework being used to prepare the financial statements have been proposed by the International Federation of Accountants  The external links in this article or section may require cleanup to comply with Wikipedia's content policies. . IFAC's International Auditing Practices Committee (IAPC IAPC Instantly Available PCIAPC International Auditing Practices Committee IAPC International Association of Pet Cemeteries IAPC International Association for the Presa Canario IAPC Illinois Association of Pet Crematories IAPC Internet anti Piracy Campaign ) has recommended these revisions to International Standard on Auditing (ISA (1) (Instruction Set Architecture) See instruction set. (2) (Interactive Services Association) See Internet Alliance. (3) (Internet Security and Acceleration) See .NET. ) 700, The Auditor's Report Auditor's Report Recorded in the annual report, the auditor's report tests to see that a corporation's financial statements comply with GAAP. This is sometimes referred to as the clean opinion. Notes: Most auditor's reports consist of three paragraphs. on Financial Statements, so that users may better understand the context for the auditor's opinion. "Globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation of markets has meant that financial statements are increasingly used by foreign investors and analysts, hence clear labeling of the particular accounting and auditing frameworks is essential," says Dietz Mertin, IAPC chairman. The IAPC has long required that auditor reports identify which country's accounting principles have been used in audited financial statements where that is not evident. The amendment is an effort to transform what is currently a best practice into standard practice. Changes to the standard will become effective for audits for periods ending on or after Sept. 30, 2002. View the exposure draft on IFAC's Web site www.ifac.org. |
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