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• December 2011 Issue
• commentary
  • Full stop - on his high horse
  • One Young World – Start Leading
• focus
  • A green office - Eliminate the paper with smart software (CQS Case Study)
  • Addressing the Challenge of Materiality - More than just Compliance
  • Assurance of the IR - Where are we in this part of the journey?
  • Financial Information in an Integrated Report - A Forward Looking Approach
  • Integrated Reporting - The Status Quo
  • IR – The SA Experience – KPMG
  • South Africa's Early Reporters - Not yet an Ideal Landscape
  • Sustainability - The Stakeholder Revolution and the sme
  • The Experience of a Long-time Integrated Reporter Novo Nordisk
• Analysis
  • Social and Ethics Committees - Blessing or Burden?
• life
  • Treasuring Art - Cash in the Attic
  • VW Scirroco R
  • Your Portfolio Life
• report
  • Transformation: Understanding well your Sphere of Influence
• CPD Verifiable Articles
  • Assurance of the IR - Where are we in this part of the journey? (1500min)
  • Addressing the Challenge of Materiality - More than just Compliance (1500min)
  • Sustainability - The Stakeholder Revolution and the sme (1500min)
  • Social and Ethics Committees - Blessing or Burden? (1500min)

Auditing

NEW FORM OF AUDIT REPORT

The International Auditing and Assurance Standards Board (IAASB) has issued a new standard, ISA 700 – The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. ISA 700 is intended to enhance the transparency and comparability of auditor's reports across international borders.

The standard also sets out clear guidance to the auditor in those circumstances when the audit is conducted in accordance with both ISAs and the auditing standards of a specific jurisdiction, and in particular on preparing an auditor's report to meet both the report structure required by the national jurisdiction and the requirements of the ISA. The new wording for the auditor's report includes:

• Better explanations of the respective responsibilities of management and the auditor.
• An updated description of the audit process to reflect the new IAASB Audit Risk Standards.
• Clarification of the scope of the auditor's responsibilities with respect to internal control.

AUDITORS, ARE YOU REALLY INDEPENDENT?

The European Federation of Accountants (FEE) has published a 186-page paper outlining how to apply, in practice, the principles underlying the European Commission's (EC) Recommendation on auditor independence. The EC Recommendation requires auditors to identify, consider, and document potential threats to their independence and to detail the safeguards that have been put in place to eliminate those threats. The FEE publication also provides a comparison of the requirements of the EC Recommendation with that of the independence section of the International Federation of Accountants (IFAC) Code of Ethics. To download a free copy go to http://www.fee.be/publications/main.htm

NEW EDs ON MATERIALLY AND ESTIMATES

IFAC's IAASB invites comments on two new EDs: ISA 320 - Materiality in the Identification and Evaluation of Misstatements and ISA 540 - Auditing Accounting Estimates and Related Disclosures (Other than Those Involving Fair Value Measurements and Disclosures). The revisions to these standards are part of IAASB's drive to strengthen audit quality worldwide. The comment deadline is 30 April 2005. For additional information, please visit www.ifac.org

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