PFM Board
Internal and External Audit => External Audit, an essential oversight function => Topic started by: chandra on July 31, 2016, 02:03:29 GMT
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Extended Audit reports
In recent days, Extended Audit reports have been seen as new developments in the field of auditing. It has come of because of growing concerns of the investors, lenders and other creditors about the limitation of standard audit reports in conveying information needs of the users of the financial statements. It is believed that extended audit report will provide useful information in greater length covering the core business of the entity being audited that that was in past in single paged audit report in the form of opinion.
This would help to ensure better transparency in financial reporting.
The main benefits of extended audit report include:
• Enhanced value for all market participants – increasing confidence and transparency
• Increased dialogue between all parties
• Increased professional scepticism in areas where key audit matters are identified
• Improved audit quality and user perception
• Increased audit value
• Increased clarity and a more comprehensive picture of a company for investors.