09/25/2020 | News release | Distributed by Public on 09/25/2020 11:21
Recent corporate failures and scandals across the globe have called into question the role and responsibility of the auditor in relation to fraud and going concern in an audit of financial statements. Some examples include:
These events, among others, have highlighted a continuing difference between what users expect from the auditor and the financial statement audit, and the reality of what an audit is. The expectation gap, which is intensified when companies collapse without warning signals, detracts from the public's confidence and trust in the financial reporting system.
The IAASB is committed to exploring how we can play our part to help narrow the expectation gap, but we cannot solve this problem alone. Each player in the financial reporting ecosystem (which includes management and those charged with governance, internal and external auditors, governments, professional bodies, regulators and oversight bodies, investors, and others) has a role to play and must consider actions they can take to help narrow the gap and improve financial transparency.
We, therefore, ask all stakeholders to help us understand what we can do to narrow the gap by:
The public consultation and roundtable are part of our efforts to understand more about these important public interest issues and foster discussion on the broader financial reporting ecosystem.