Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing
Exposure Draft

This exposure draft seeks views from stakeholders in relation to the IAASB’s proposals to enhance auditor reporting globally. The proposals respond to calls from investors, analysts, and other users of audited financial statements in the wake of the global financial crisis for the auditor to provide more relevant information in the auditor’s report, and build upon the indicative direction set out in the IAASB’s June 2012 Invitation to Comment. This exposure draft includes proposed new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report, and a number of proposed revised ISAs, including revisions to ISA 700, Forming an Opinion and Reporting on Financial Statements. Example reports illustrating various circumstances are included in the proposed ISAs. The complete exposure draft is included as the first file below; the separate components are also included for ease of accessibility.

An At a Glance publication provides an overview of the exposure draft. IAASB Staff has prepared Guidance to Assist in Field Testing of Proposed ISA 701 to highlight considerations that may be of assistance to audit firms as they plan their field testing of proposed ISA 701. Staff-prepared supplements illustrating the changes to extant ISA 700 and extant 705 have also been prepared.

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Submitted Comment Letters

1. Wirtschaftsprüferkammer  (Germany)
October 25, 2013

2. BlackRock, Inc. (United States)
October 30, 2013

3. Chartered Professional Accountants of Canada (Canada)
October 30, 2013

4. Auditor General of Alberta (Canada)
November 1, 2013

5. Australasian Council of Auditors-General (Australia)
November 4, 2013

6. Auditor General of Manitoba (Canada)
November 7, 2013

7. Association of International Accountants (United Kingdom)
November 8, 2013

8. Chris Barnard (Germany)
November 8, 2013

9. Fédération des Experts Comptables Européens  (Europe)
November 8, 2013

10. Institute of Professional Auditors (Russian Federation)
November 11, 2013

11. Institute of Chartered Accountants (Ghana) (Ghana)
November 13, 2013

12. Klaus Ruhnke (Freie Universität Berlin, FACTS Department) (Germany)
November 15, 2013

13. Swire Pacific Limited (Hong Kong (Special Administrative Region of China))
November 15, 2013

14. Komora Auditorů České Republiky (Chamber of Auditors of the Czech Republic) (Czech Republic)
November 18, 2013

15. National Audit Office (United Kingdom)
November 18, 2013

16. Association of Chartered Certified Accountants (United Kingdom)
November 19, 2013

17. California Society of CPAs (United States)
November 19, 2013

18. European Issuers (Belgium)
November 19, 2013

19. Inter-American Accounting Association (Bolivia)
November 19, 2013

20. New York State Society of Certified Public Accountants (United States)
November 19, 2013

21. Pennsylvania Institute of Certified Public Accountants (United States)
November 19, 2013

22. SRA (Samenwerkende Register Accountants) (Netherlands)
November 19, 2013

23. Swedish National Audit Office (Sweden)
November 19, 2013

24. Australian Auditing and Assurance Standards Board (Australia)
November 20, 2013

25. BCEMW- Jean Bédard, Paul Coram, Reza Espahbodi, Theodore J. Mock and Rick C. Warne (United States)
November 20, 2013

26. Crowe Horwath International (United States)
November 20, 2013

27. Institute of Chartered Accountants Australia (Australia)
November 20, 2013

28. International Association of Insurance Supervisors (Switzerland)
November 20, 2013

29. New Zealand Institute of Chartered Accountants (New Zealand)
November 20, 2013

30. Provincial Auditor Saskatchewan (Canada)
November 20, 2013

31. The World Bank (United States)
November 20, 2013

32. U.S. Chamber of Commerce - Center for Capital Market (United States)
November 20, 2013

33. American Institute of Certified Public Accountants’ Auditing Standards Board (United States)
November 21, 2013

34. AngloGold Ashanti Limited (South Africa)
November 21, 2013

35. Baker Tilly UK Audit LLP (United Kingdom)
November 21, 2013

36. CPA Australia (Australia)
November 21, 2013

37. Canadian Auditing and Assurance Standards Board (Canada)
November 21, 2013

38. Deloitte Touche Tohmatsu Limited (United States)
November 21, 2013

39. European Banking Authority (Europe)
November 21, 2013

40. Federation of Accounting Professions Thailand (Thailand)
November 21, 2013

41. Financial Reporting Council (Australia)
November 21, 2013

42. Financial Reporting Council (United Kingdom)
November 21, 2013

43. Grant Thornton International Ltd (United Kingdom)
November 21, 2013

44. Hong Kong Institute of Certified Public Accountants (Hong Kong (Special Administrative Region of China))
November 21, 2013

45. Institute of Certified Public Accountants in Ireland (Ireland)
November 21, 2013

46. Institute of Certified Public Accountants of Kenya  (Kenya)
November 21, 2013

47. Institute of Chartered Accountants of Scotland (United Kingdom)
November 21, 2013

48. Johannesburg Stock Exchange (South Africa)
November 21, 2013

49. PKF International Limited (United Kingdom)
November 21, 2013

50. PricewaterhouseCoopers International Limited (United Kingdom)
November 21, 2013

51. Securities Commission of Malaysia - Audit Oversight Board (Malaysia)
November 21, 2013

52. Standard & Poor's Ratings Services (United States)
November 21, 2013

53. The Japanese Institute of Certified Public Accountants (Japan)
November 21, 2013

54. The Malta Institute of Accountants (Malta)
November 21, 2013

55. The Securities Analysts Association of Japan (Japan)
November 21, 2013

56. ASSIREVI Association of the Italian audit firms  (Italy)
November 22, 2013

57. Ashley Burrowes (University of Canterbury) (New Zealand)
November 22, 2013

58. Auditor General of Canada (Canada)
November 22, 2013

59. Auditor General of South Africa (South Africa)
November 22, 2013

60. Australian Institute of Company Directors (Australia)
November 22, 2013

61. BDO International Limited (United Kingdom)
November 22, 2013

62. CFO Forum of South Africa (South Africa)
November 22, 2013

63. Canadian Securities Administrators - Chief Accountants Committee (Canada)
November 22, 2013

64. Chartered Accountants Ireland – Audit and Assurance Committee  (Ireland)
November 22, 2013

65. CohnReznick LLP (United States)
November 22, 2013

66. Compagnie Nationale des Commissaires aux Comptes and the Conseil Superieur de I'Ordre des Experts-Comptables (France)
November 22, 2013

67. Contrôleur des finances de Québec (Canada)
November 22, 2013

68. Cristian E. Munarriz (Argentina)
November 22, 2013

69. Dansk Aktionæforening (Danish Shareholders Association) (Denmark)
November 22, 2013

70. Den norske Revisorforening (The Norwegian Institute of Public Accountants) (Norway)
November 22, 2013

71. EAIG – European Audit Inspection Group  (Europe)
November 22, 2013

72. Ernst & Young Global Limited (United Kingdom)
November 22, 2013

73. European Court of Auditors (Europe)
November 22, 2013

74. FAR - Institute for the Accountancy Profession in Sweden (Sweden)
November 22, 2013

75. FSR - Danish Institute of Accountants (Denmark)
November 22, 2013

76. Federación Argentina de Consejos Profesionales de Ciencias Económicas (Argentine Federation of Professionals Councils of Economic Sciences) (Argentina)
November 22, 2013

77. Hunter College Graduate Class in Advanced auditing (United States)
November 22, 2013

78. Ibracon - Instituto dos Auditores Independentes do Brasil (Brazil)
November 22, 2013

79. Institute of Chartered Accountants in England and Wales (United Kingdom)
November 22, 2013

80. Institute of Chartered Accountants of Nigeria (Nigeria)
November 22, 2013

81. Instituto Mexicano de Contadores Publicos AC (Mexico)
November 22, 2013

82. Instituut van de Bedrijfsrevisoren - Institut des Réviseurs d'Entreprises (Belgium)
November 22, 2013

83. J Robert Gibson (City University of Hong Kong – First Submission) (Hong Kong (Special Administrative Region of China))
November 22, 2013

84. J Robert Gibson (City University of Hong Kong – Second Submission) (Hong Kong (Special Administrative Region of China))
November 22, 2013

85. KHT-yhdistys – Föreningen CGR ry (the Finnish Institute of Authorised Public Accountants) (Finland)
November 22, 2013

86. KPMG IFRG Limited (United Kingdom)
November 22, 2013

87. Korean Institute of Certified Public Accountants (Korea, Republic of)
November 22, 2013

88. Kreston International Limited (United Kingdom)
November 22, 2013

89. Ministerio de Economía y Competitivad (Instituto de Contabildad y Auditoria de Cuentas) (Spain)
November 22, 2013

90. Moore Stephens LLP (UK firm) (United Kingdom)
November 22, 2013

91. Nederlandse Beroepsorganisatie van Accountants (Netherlands)
November 22, 2013

92. Novo Nordisk A/S (Denmark)
November 22, 2013

93. South African Institute of Chartered Accountants (South Africa)
November 22, 2013

94. Standard Life Investments (United Kingdom)
November 22, 2013

95. United States Government Accountability Office (United States)
November 22, 2013

96. Chartered Institute of Public Finance & Accountancy (United Kingdom)
November 25, 2013

97. Eumedion (Dutch Institutional Investors) (Netherlands)
November 25, 2013

98. European Federation of Accountants and Auditors for SMEs (Belgium)
November 25, 2013

99. Group of 100 (Australia)
November 25, 2013

100. IFAC Small and Medium Practices Committee (United States)
November 25, 2013

101. Macquarie University (Australia)
November 25, 2013

102. RSM International Limited (United Kingdom)
November 25, 2013

103. Zambia Institute of Chartered Accountants - ZICA (Zambia)
November 25, 2013

104. Altaf Noor Ali (Pakistan)
November 26, 2013

105. Auditor General of Ontario (Canada)
November 26, 2013

106. Dubai Financial Services Authority (United Arab Emirates)
November 26, 2013

107. Felicitas T Irungu (Felikar and Associates) (Kenya)
November 26, 2013

108. Hans Gortemaker (Erasmus University) (Netherlands)
November 26, 2013

109. Individual- Clinical Lasers Limited (Canada)
November 26, 2013

110. MAZARS (France)
November 26, 2013

111. Swiss Holdings (Switzerland)
November 26, 2013

112. Association of British Insurers (United Kingdom)
November 27, 2013

113. Malaysian Institute of Accountants' Auditing and Assurance Standards Board  (Malaysia)
November 27, 2013

114. Canadian Public Accountability Board (Canada)
November 28, 2013

115. Pitcher Partners (Australia)
November 28, 2013

116. Chinese Institute of Certified Public Accountants (China)
November 29, 2013

117. Institut der Wirtschaftspruefer (Germany)
November 29, 2013

118. Institute of Chartered Accountant of India (India)
December 2, 2013

119. Peter W. Young (Consulo Advisers) (Australia)
December 2, 2013

120. European Securitites and Markets Authority (Europe)
December 3, 2013

121. Investment Management Association (IMA) (United Kingdom)
December 3, 2013

Related Resources

• 2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements
• At a Glance: Exposure Draft, Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing
• Guidance to Assist in Field Testing of Proposed International Standard on Auditing (ISA) 701, Communicating Key Audit Matters in the Independent Auditor’s Report
• Improving the Auditor’s Report
• International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor’s Report Thereon