Audit Report On Audit Reports Essay

2456 Words Mar 31st, 2016 10 Pages
The way in which audit reports have been documented and presented has slightly changed since the 1940’s whereby the use of guidelines as provided by GAAS (Generally Accepted Auditing Standards) in the documentation and reporting of the report is still in use. The system used for reporting under GAAS within the United States is the pass/ fail model which analysts believe to be a very useful tool for concise and clear assessment of a fair reporting of the audited financial statements of a company. The new set of rules of the PCAOB sets out to seek the presentation of additional information regarding the process of audit pertaining to each business by rolling out new audit standards.
Until recent times, the contents of the information being represented in the audit documents shoved into the faces of the users without much scrutiny. Research indicates that the sufficiency that most of the released audit reports have produced mixed results, with most decision makers, investors, as well as lenders agitating for more comprehensive and well-documented reports. The unqualified reports given by auditors most likely forms the beginning point for most investors and lenders to form their decisions about investing or doing business with a company. Therefore, the firms put heavy reliance on these documents; the PCAOB made the decision to include the details of each audit firm, and their partners as well as their signatures when making the final report concerning the audit. Most users of…

Related Documents