Audit Report On The Audit Essay
The auditor 's report is one of the crucial means by which the auditor provides a judgement and acceptable assurance on the financial statement to investors and other users of financial statements, which has not changed much since the 1940s. To correspond to the size and complexity of markets that have greatly increased in the past seventy years, and to attract a greater percentage of households to invest in the stock market, a new auditing standard and related amendments to enhance the auditor 's reporting model were proposed for public comment by the U.S. Public Company Accounting Oversight Board (PCAOB) on 13 August 2013. Changes to the audit reporting model require auditors to provide additional information to investors and other users of financial statements about the audit and the auditor, by which means to disclose areas of high audit risk within the audit report.
This study includes three parts: the first part covers the issues of the changes to the audit reporting model; in the second part the impact of changes to the audit reporting models will be addressed; and at last suggestions for future research related to the audit reporting model will be discussed.
2. The changes to the audit reporting model
In this part, two main changes of the audit reporting model will be discussed. The first subject that should be brought into concern is the disclosure in the audit report of critical audit matters (CAMs). Although the current “pass/fail” model of the…