The UK Auditing Practices Board (APB) has
revised its description of the scope of an audit, amending the
auditor’s responsibility.

The APB has amended the short form description
of the scope of an audit, referring to the auditor’s responsibility
under ISAs to read all financial and non-financial information in
the annual report, to identify material inconsistencies with the
financial statements.

The description of the scope of an audit
maintained on the APB’s website, which an auditor may choose to
refer to in an auditor’s report,  has also been amended to be
a generic description and can be applied to any entity.

“Investors and other users of annual reports
regard the auditor’s involvement with the financial and narrative
“other information” included with the financial statements to be of
increasing importance,” APB chairman Richard Fleck said.

“The APB, has, therefore, amended the
description of the auditor’s responsibility included in the
auditor’s report to refer to the auditor’s obligation to read such
other information with a view to ensuring that there are no
material misstatements or inconsistencies between it and the
financial statements”.

The standard, ISA 700: The Auditor’s
Report on Financial Statements, and bulletin, Bulletin 2010/2:
Compendium of Illustrative Auditor’s Reports on United Kingdom
Private Sector Financial Statements for periods ended on or after
15 December 2010, have been revised to reflect the changes.

The revision of ISA 700 is effective for
audits of UK entities for periods ending on or after 23 March