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IFAC issues exposure drafts.

The International Federation of Accountants issued two exposure drafts over the summer months, with comments requested by January 31, 1993.

Proposed International Standard on Auditing Reporting on Comparatives provides guidance for auditors on showing corresponding figures (known as "comparatives") in financial statements for the preceding audit period.

Issues discussed include guidance for an incoming auditor when the prior period's financial statements were audited by someone else or were not audited (an issue of concern to the International Organization of Securities Commission). The proposed standard also discusses situations in which the predecessor auditor's report is to be reissued. Various examples of appropriate audit reports are provided in the appendix.

While the standard establishes the auditor's responsibilities regarding comparatives, it acknowledges that the wording of the auditor's report depends on national reporting requirements.

The second ED is proposed International Statement on Auditing Communication With Management. It discusses the relationship between the auditor and management, summarizing a number of international standards in one document and reiterating guidance regarding ethics, engagement letters, management representation letters and discussions held between the auditor and management during the engagement.

The statement also discusses matters, including findings and recommendations regarding internal controls, the auditor would communicate to appropriate levels of management.

To order copies of the EDs, contact the AICPA order department by calling 1-800-TO-AICPA.
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Title Annotation:International Federation of Accountants
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Oct 1, 1992
Previous Article:IASC issues new ED for comparability project.
Next Article:Denmark vote seen as setback to EC unity.

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