[Global Financial Insights] IAASB Issues Guidance on Audit Reporting for Audit of Financial Statements of Less Complex Entities and More

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update.

1. IAASB issues guidance on audit reporting for audit of financial statements of less complex entities

The International Auditing and Assurance Standards Board (IAASB) has issued guidance on audit reporting relating to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities. This guidance shall assist the auditor in issuing the modified audit report and also while including the Emphasis of Matter paragraph (EOM) or Other Matter (OM) paragraph in the auditor’s report. Further, it shall also guide the auditor in reporting material uncertainty related to going concern.

The guidance includes eight illustrative audit reports explaining the different scenarios of adverse opinion, disclaimer of opinion, and opinion where there is a material uncertainty related to going concern. However, it is important to note that this guidance shall complement the previously released resources and shall not amend or override previously issued International Standard on Auditing for Less Complex Entities. Thus, this guidance shall not be the substitute for the previously issued standard. This new guidance can be accessed from IAASB official website.

Source: IAASB News

2. IFRS releases the meeting report of emerging economies group and International Sustainability Standard Board

The meeting held at IFRS foundation provides a platform to discuss several topics in financial reporting. These meetings play a pivotal role in developing IFRS Accounting Standards that brings transparency, accountability, and efficiency to the financial markets worldwide. Recently, IFRS foundation held a meeting with the Emerging Economies Group and International Sustainability Standard Board wherein they discussed power purchase agreements, uncertainties in the financial statements, enhancement of the Sustainability Standard, and various other topics. The report of the aforementioned meeting has now been published on the IFRS official website.

Source: IFRS Foundation

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