Udvidet gennemgang: En analyse i forhold til nuværende regnskabs-produkter samt diskussion af, hvorvidt udvidet gennemgang vil opfylde regeringens målsætning med indførelsen af en udvidet gennemgang

Abstract

The extended review is based on the new International Standard on Review Engagements (ISRE 2400) (revised), which is effective for reviews of financial statements for periods ending on or after December 31, 2013. To better understand the extended review, this assignment performs a regulatory analysis of the old ISRE 2400 versus the new ISRE 2400. The regulatory analysis concludes, that the new ISRE 2400 is aggravating, compared to the old ISRE 2400. The most significant change in the new ISRE 2400, is that the auditor should perform additional procedures, when the auditor becomes aware that the financial statements may be materially misstated. Furthermore, there have been implemented procedures to address specific circumstances. Apart from the aggravating conditions in the new ISRE 2400, a review is different from an extended review, in that an extended review demand execution of additional actions toward specific areas such as, obtaining a land register, obtaining engagement confirmation from banks, send a letter to the company’s lawyer and finally obtain documentation for three months reporting of taxes, VAT, etc. This assignment furthermore investigates the differences between an audit and an extended review. The main difference between an audit and an extended review, is that an audit is more comprehensive and thorough in the way evidence is obtained and documented, in order to obtain the relevant level of security, that materially items in the financial statement is not materially misstated. To investigate whether the extended review will fulfill the government’s goal for implementing it, there have been made investigations toward the opinion and attitudes toward the extended review, by accounting stakeholders such as auditors, banks, Dansk Industri and Finansrådet. There have been made personal interview with state authorized auditors and bank employees. The result of the personal interviews and investigations on the comments to the draft of the extended review is that only a select few companies in accounting class B, will be recommended to use it. Furthermore it is most likely, that the expenses will not be cut by 25 percent in many cases.