Although the external audit is only one element within the broader financial reporting ecosystem, the auditor’s role in audits of financial statements continues to receive heightened public attention.
There is a growing expectation gap between the perception of the role of the auditor and the auditor’s responsibilities in a financial statement audit.
Outreach initiatives
On September 15, 2020, the International Auditing and Assurance Standards Board (IAASB) addressed this gap with the release of its Discussion Paper, Fraud and Going Concern in an Audit of Financial Statements. Subsequently, the Auditing and Assurance Standards Board (AASB) undertook consultations with a wide range of Canadian stakeholders.
To better understand the issues that matter most, we consulted with:
- practitioners (large firms, small-medium firms and public sector);
- management;
- board/audit committee members;
- regulators;
- users; and
- academics.
We included the views expressed during these consultations in a response letter to the IAASB, and we determined that in order to close the expectation gap, collective action is needed by all parties within the financial reporting ecosystem.
Fraud and Going Concern: What’s your role?
In February 2021, AASB staff had the opportunity to summarize and share what we heard from stakeholders during our consultations, including their views on the proposed enhancements, with a group of Chartered Professional Accountants of British Columbia (CPA BC) practitioners.
Watch this excerpt of the live presentation to learn more.
Download a transcript of the presentation.