In the wake of the international financial crisis that has plagued the entire world over the past 5-6 years users, of financial statements have increasingly raised the demand for a more understandable and transparent auditor’s report. Hence the international auditing standard-setting organ, the ”International Auditing and Assurance Standards Board”, has launched a series of studies to identify, which expectations can be met by changing the auditor’s report. One of the main studies was a jointly commissioned international research on the financial statement user’s perceptions of the auditor’s report. This study, along with the Board’s consultation paper ”Enhancing the Value of Auditor Reporting: Exploring Options for Change”, forms the basis for the recent ongoing study, in which this dissertation is based on. Based on the abovementioned studies the Board has issued an Invitation To Comment, ”Improving the Auditor’s Report”, where it presents identified opportunities on improving the auditor’s report. The aim of the Invitation To Comment is to determine whether users of financial statements will award these amendments the value that they are seeking. Especially investors and financial analysts are requesting a greater insight in regards to the individual audits and the audited entity. The Board encourages as many stakeholders as possible to answer the Invitation To Comment in order to meet the public interest in the best possible way. The main object of this dissertation is to find out if the proposals submitted by the ”International Auditing and Assurance Standards Board” will meet and satisfy the expectations that users of financial statements have with regard to improving the auditor’s report. The thesis in the dissertation is based on an empirical analysis, to find out how users of the financial statement relate to the submitted proposals. Specifically relating to the requirement of including an Auditor Commentary section as well as an opinion about Going Concern issues from the auditor in the improved auditor’s report. To support the empirical analysis, the dissertation will give a thorough review of the relevant theories. During the analysis, the dissertation will compare and justify our obtained results with relevant described theories. The conclusion of the analysis shows that the majority of financial statement user, do not decidedly view that the submitted proposals will result in a more understandable and transparent auditor’s report. Many of the financial statement users, asses the submitted suggestions as being a step in the right direction. However they are concerned that the implementation of an Auditor Commentary section, as well as a required statement from the auditor about an entity’s ability to be Going Concern, will not create the additional value they are intended to. Furthermore, the users of the financial statements are concerned, that the auditor thereby will be the provider of original information. Based on our analysis, the “International Auditing and Assurance Standards Board”, is on the right path. However, in order to accommodate the expectations from the accounting world, they need to go on step further.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|