Udvidet gennemgang: Interessenternes forventninger til den nye erklæringsstandard

Maia Krøier Madvig Kjær & Monica Häckert

Student thesis: Master thesis


This thesis is an introduction and discussion of the new Danish declaration standard udvidet gennemgang also known as extended review. The exemption from statutory audit has been in focus during the past few years, especially in Denmark but also in the rest of Europe. The reason is that a small company will not be in need of the same audit work compared to a larger company. Therefore the aim of the new declaration standard is to reduce the audit costs regarding audit for small companies. However being exclusive to Denmark the new declaration standard is going against harmonization with the rest of Europe. This is what makes the product interesting. The consequences of changing from audit to udvidet gennemgang, can be comprehensive. The new declaration standard can diminish the probability for the auditor to discover and correct misstatements. An adverse effect hereof could be the reputation of the auditor and the overall credibility of the financial statement. The purpose of this thesis is to examine and analyze the expectations towards the new declaration standard. Particularly with focus on the expenditures related to the audit, the credibility regarding the financial statement and the reporting circumstances. The result of our study shows that the knowledge of the new declaration standard among the participants is limited, but they are all aware of its existence. The companies on the one hand expect a decrease in the yearly expenses to the auditor. On the other hand the auditors do not expect to be able to decrease their time consumption with the new declaration standard compared to a traditionally audit. Therefore it is questionable if in fact the expenses concerning the auditor will decrease with the new declaration standard. Our study suggests that the companies expect that the financial institutions will not accept the new declaration standard as an alternative to a full audit. One of the reasons is the lack of credibility with the new declaration standard. Furthermore we see confusion because of the conclusion in the Auditors’ Report in the new declaration standard is so alike the conclusion used when it is an audit carried out, but not the same at all. The companies have to be aware of the demands from the stakeholders, especially those from the financial institutions. If the new standard is going to be a success it is important with information and knowledge both amongst auditors and companies. The confidence in the new standard has to increase for example through more awareness and practical use.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages184