A roundup of auditors' responsibilities

In 2015, the Malaysian Institute of Accountants (MIA) adopted new and revised auditor reporting and related auditing standards which are set to enhance the communicative value of the auditor report. Which of the following standards DOES NOT relate to the changes in the auditor report?

ISA 260 (Revised), Communication with Those Charged with Governance

ISA 600 (Revised) Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)

ISA 570 (Revised), Going Concern

ISA 720 (Revised), Auditor Responsibilities Relating to Other Information

The new and revised auditor reporting and related auditing standards are effective for audits of financial statements for periods -

Beginning on or after 15 December 2016

For annual periods beginning on or after 1 January 2017

For annual periods ending on or after 31 December 2017

Ending on or after 15 December 2016

The MIA had issued Recommended Practice Guide 12 in November 2016 to guide practitioners in preparing the new auditor report for financial statements prepared in accordance with MPERS. What are the main changes to the new auditor report?

Assertions of dual compliance in relation to auditing standards and regulatory requirements, enhanced description of auditor opinion, information other than the financial statements, changes to the presentation/format of the report and additional description on the first year adoption of MFRS by private entities

Assertions of dual compliance in relation to auditing and ethical standards, enhanced description of the auditor responsibilities, information other than the financial statements, changes to the presentation/format of the report and additional description on the first year adoption of MPERS

Assertions of dual compliance in relation to auditing and ethical standards, enhanced description of the auditor responsibilities, information other than the financial statements, changes to the presentation/format of the report and additional description on the first year adoption of MFRS by private entities

Assertions of dual compliance in relation to auditing standards and regulatory requirements, enhanced description of auditor opinion, information other than the financial statements, changes to the presentation/format of the report and additional description on the first year adoption of MPERS

The requirements on assertions related to dual compliance in the new auditor report relate to the following -

That the audit has been conducted in accordance with the ISAs and that the auditor has exercised due care when performing the audit of the reporting entity in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code)

That the audit has been conducted in accordance with the ISAs and that the auditor has maintained confidentiality on the information obtained during the course of the audit of the reporting entity in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code)

That the auditor is independent of the reporting entity in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) only

That the audit has been conducted in accordance with the ISAs and that the auditor is independent of the reporting entity in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code)

The following are the additional roles and responsibilities of the auditor throughout the audit that will form part of the enhanced responsibilities that will have to be stated in the revised auditors report, EXCEPT -

Conclude on the appropriateness of the director using the going concern basis on accounting

Evaluate the overall presentation, structure and content of the financial statements of the entity, including the related disclosures

Conclude on reporting entity compliance with regulatory requirements

Identify and assess the risks of material misstatement of the financial statements

One of the enhanced reporting relating to auditor responsibilities is to conclude on the appropriateness of the director using the going concern basis on accounting. What would the auditor need to write in the report in relation to the use of going concern?

Where disclosures related to material uncertainty on going concern are inadequate, the auditor will have to communicate the matter to directors

Where the auditor concludes that a material uncertainty exists, they are required to draw attention in the auditor report to the related disclosures in the financial statements

The auditor will also have to assert that past events or conditions may cause the entity to cease to continue as a going concern

Whether any uncertainty exists related to events or conditions that may cast a doubt on the ability of the entity to continue as a going concern

In August 2016, the MIA resolved NOT to provide the options in paragraph 40(b) and 40(c) of ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements for the new auditor report. What do the options relate to?

Option for the description of the auditors responsibilities to be included in an appendix to the report or by way of reference to website of the reporting entity, instead of being included in the body of the auditor report

Option for the description of the auditors responsibilities to be included in the body of the auditor report or by way of reference to website of an appropriate authority, instead of being included in an appendix to the auditor report

Option for the description of the auditors responsibilities to be included in the body of the auditor report or an appendix to the auditor report, instead by way of reference to website of an appropriate authority

Option for the description of the auditors responsibilities to be included in an appendix to the report or by way of reference to website of an appropriate authority, instead of being included in the body of the auditor report

The auditor report on financial statements adopting MPERS in the first year (ie financial statements beginning on or after 1 January 2016) will carry an additional paragraph in the Other Matters section of the report. What does this additional paragraph require the auditor to state or assert?

That it is very unlikely that the auditor can obtain sufficient appropriate audit evidence regarding the current period financial statements if the auditor has not also obtained sufficient appropriate audit evidence on the opening statement of financial position

That the comparative information, which relates to the financial statements that were published before the financial statements prepared in accordance with MPERS for the first time, is unaudited

That it was mandatory for the auditor to be separately engaged to report on the restated comparative information in the financial statements prepared in accordance with MPERS

That the auditor is not relieved of the requirement to obtain sufficient appropriate audit evidence that the opening balances and comparative information do not contain misstatements that materially affect the current period financial statements

There is other information that commonly accompanies the audited financial statements of private entities. The audit report must now explicitly state that the audit opinion does not cover such information and no form of assurance conclusion thereon is expressed. In the context of private entities in Malaysia, the other information usually refers to -

The Director Report

The Annual Return

The Chairman Statement

Statement of Corporate Governance

What is the most notable change to the presentation of the auditors report aside from the additional assertions made?

The Other Matter paragraph is now presented right at the beginning of the report

The Auditor Responsibilities is now presented right at the beginning of the report

The Opinion is now presented right at the beginning of the report

The Opinion is now presented at the end of the report

A roundup of auditors' responsibilities

In 2015, the Malaysian Institute of Accountants (MIA) adopted new and revised auditor reporting and related auditing standards which are set to enhance the communicative value of the auditor report. Which of the following standards DOES NOT relate to the changes in the auditor report?

The new and revised auditor reporting and related auditing standards are effective for audits of financial statements for periods -

The MIA had issued Recommended Practice Guide 12 in November 2016 to guide practitioners in preparing the new auditor report for financial statements prepared in accordance with MPERS. What are the main changes to the new auditor report?

The requirements on assertions related to dual compliance in the new auditor report relate to the following -

The following are the additional roles and responsibilities of the auditor throughout the audit that will form part of the enhanced responsibilities that will have to be stated in the revised auditors report, EXCEPT -

One of the enhanced reporting relating to auditor responsibilities is to conclude on the appropriateness of the director using the going concern basis on accounting. What would the auditor need to write in the report in relation to the use of going concern?

In August 2016, the MIA resolved NOT to provide the options in paragraph 40(b) and 40(c) of ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements for the new auditor report. What do the options relate to?

The auditor report on financial statements adopting MPERS in the first year (ie financial statements beginning on or after 1 January 2016) will carry an additional paragraph in the Other Matters section of the report. What does this additional paragraph require the auditor to state or assert?

What is the most notable change to the presentation of the auditors report aside from the additional assertions made?

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A roundup of auditors' responsibilities

In 2015, the Malaysian Institute of Accountants (MIA) adopted new and revised auditor reporting and related auditing standards which are set to enhance the communicative value of the auditor report. Which of the following standards DOES NOT relate to the changes in the auditor report?

The new and revised auditor reporting and related auditing standards are effective for audits of financial statements for periods -

The MIA had issued Recommended Practice Guide 12 in November 2016 to guide practitioners in preparing the new auditor report for financial statements prepared in accordance with MPERS. What are the main changes to the new auditor report?

The requirements on assertions related to dual compliance in the new auditor report relate to the following -

The following are the additional roles and responsibilities of the auditor throughout the audit that will form part of the enhanced responsibilities that will have to be stated in the revised auditors report, EXCEPT -

One of the enhanced reporting relating to auditor responsibilities is to conclude on the appropriateness of the director using the going concern basis on accounting. What would the auditor need to write in the report in relation to the use of going concern?

In August 2016, the MIA resolved NOT to provide the options in paragraph 40(b) and 40(c) of ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements for the new auditor report. What do the options relate to?

The auditor report on financial statements adopting MPERS in the first year (ie financial statements beginning on or after 1 January 2016) will carry an additional paragraph in the Other Matters section of the report. What does this additional paragraph require the auditor to state or assert?

What is the most notable change to the presentation of the auditors report aside from the additional assertions made?

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out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

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