Beskrivelse af centrale forhold ved revisionen

Malene Bech Larsen & Simon Boye Andersen

Student thesis: Master thesis

Abstract

Since the financial crisis arose back in 2008, many users of annual reports, and especially the independent auditors’ opinion, have questioned the value of the audit performed by the auditors. Therefore, the “International Auditing and Assurance Standards Board” (IAASB)1 suggests to meet the users’ demand for a more informative and understandable auditors’ opinion. This led to a new audit standard, ISA 701. ISA 701 dictates how the independent auditor must communicate key audit matters in opinions on listed entities. In addition, the EU adopted legislation on 16 April 2014, which furthermore demands, that auditor’s describes the areas, which has the most significant risks of material misstatement. The thesis deals with the extensive communication, based on experiences in UK and chosen respondents’ opinion about this matter. The respondents consist of signing auditors from Deloitte and EY, board members, representatives from the Danish authorities and investors. In this way, the thesis will present an estimation of, how the description of key audit matters will be in Denmark as well as how its implementation can meet expectations of a more valuable auditors’ report and how auditors will prepare their auditor opinion in practice. The thesis will estimate how the anticipated practice will be with respect to all representatives, and what the signing auditor should consider when describing key audit matters. All of this will also lead to an estimate of how the process of communicating key audit matters will be in relation to a process where auditors probably will start by fulfilling the minimum requirements, but hopefully will end up in descriptions, which aims to provide as much value as possible, for the users of annual reports. Due to the fact, that the thesis is meant to give a clear guideline for auditors who sign on public entities, the thesis will present examples of what a good description could be, what the minimum requirements of ISA 701 and the EU legislation are. Furthermore, the thesis will provide auditors with a practical tool in the form of a guideline in which the auditor can ensure that the matters in questions are compatible with both the minimum requirements, but also and perhaps more importantly, to the anticipated best practice in Denmark.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2016
Number of pages110