The International Auditing and Assurance
Standards Board (IAASB) has issued papers for discussion exploring
disclosures in financial statements.
Evolving Nature of Financial Reporting:
Disclosure and Its Audit Implications looks at key issues
regarding financial reporting such as challenges faced in the
preparation, auditing and use of disclosures. The paper also
highlights recent trends in the range, volume and complexity of
financial statement disclosures.
“Over the past several years, we have
witnessed a transformation in the nature and extent of disclosures;
for example, it is now common to see disclosures that are more
forward-looking or qualitative,” IAASB chairman Arnold Schilder
Schilder added the IAASB is seeking to better
understand different viewpoints on a range of issues about
financial statement disclosure practices, as well as the
implications from an auditing perspective.
In order to discuss the area of audit quality
the IAASB also released another paper Audit Quality: An IAASB
IAASB technical director James Gunn said the
second paper is intended to stimulate further thought and
discussion on audit quality among stakeholders, while recognising
the importance of international consensus on audit quality
The deadline for comment on the financial
statement disclosures discussion paper is 1 June 2011, views on the
audit quality paper are welcome at all times.