Proposed changes to international standards which govern the way in which auditors communicate with board of directors or those responsible for governance, have the potential to place too much onus on the auditors, ACCA has warned.
It is particularly concerned that the changes will result in auditors having to make disclosures that company management has not and that auditors would face an open-ended mandatory requirement to report matters which are ‘serious and relevant to the responsibilities of those charged with governance’.
ACCA says such an open-ended requirement, which would include matters unconnected with the audit, would add little to audit quality. Instead it could distort professional judgement which currently has to balance ethical requirements for confidentiality and the client’s and public interest.
See full Press Release.
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