Prospective Research on New Audit Transparency Requirements, Possible Effects and Solutions to Practical Issues
Author:
Associate Prof. Daniel BOTEZ, Ph.D.
JEL:
M42
DOI:
Keywords:
transparency, disclosure, ISAs, professional practices, financial reporting, audit of financial statements
Abstract:
A study conducted in 2011, aimed at both preparers and users of financial statements and other parties concerned with financial reporting, including auditors, highlighted ongoing issues regarding the transparency of financial information and the need of a framework for the transparency of this information. \r\nAs a consequence, IFAC (International Federation of Accountants) responded with the change of certain provisions in a number of international standards on auditing, considered relevant for transparency assurance. Some changes refer to the redefinition of certain concepts, but most of them affect professional practices as they are revising/complementing provisions comprised in the application and other explanatory materials. \r\nThe present research comprises analyses and expresses its comments on the effect of these revisions on auditors’ professional practices, with a focus on Romanian auditors.\r\n