Publications by Mazars regarding the latest development in auditing, assurance and related professional standards for private and public entities in Malaysia and globally.

Overview of The New Auditor's Audit Report under the ISAs

The auditor’s report is the final output of the audit process. Many users of the financial statements and stakeholders have called to have a more informative and relevant auditor’s report. There has been increasing criticism over standardised wording and a request for audit reports to be more transparent and tailored to individual clients.

These queries have been taken into account by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) and a revised set of auditing standards on auditors’ reports were issued in 2015. These are effective for companies with financial years ending on or after 15 December 2016.

Mazars - Benchmark on Key Audit Matters

The UK has anticipated the changes embedded in the new auditor’s report and adopted a new standard on the auditor’s report in 2013. The reading of the 2014 audit reports of UK listed entities (especially FTSE 100 companies) provides an insight into what is expected in terms of communication in the new auditor’s report according to the ISAs for the audit reports on the 2016 financial statements.

Note that the UK regulation goes even beyond the obligations of the ISAs: for example, the UK auditors have communicated in their auditor’s reports on materiality and scoping considerations for group audits, which is not required by the ISAs.