The Association of Chartered Certified Accountants (ACCA) has called for the UK Financial Reporting Council (FRC) to allow more time for "education and consideration" in relation to its recent auditor’s report proposals.
The comments came on the back of the ACCA’s Global Forum where the FRC proposals to revise the International Standard on Auditing 700, issued in February 2013, was debated among members.
ACCA head of auditing David York said while there is support for the proposals in general, they are "radical" because "no audit firm is currently making this sort of disclosure".
The FRC consultation proposes for the auditor to disclose information about the audit within the auditor’s report itself to enhance the value of audit for investors. This includes, auditors explaining how they applied the concept of materiality, specifying which risks of material misstatements were identified and how this affected the audit strategy.
Auditors would also be required to give a summary of how the audit scope responded to these matters.
York said there is some "disappointment" the FRC and the International Auditing and Assurance Standards Board (IAASB), which is conducting a wider international initiative to make auditor reporting more responsive to investor demands, have "not been able to move forward together on this".
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"The FRC has a marked advantage because it is capable of steering both auditing and corporate governance, so change can be implemented quickly and uniformly; something that is not currently possible globally," remarked.