AUDIT REPORTS have been described as “hopeless” by ICAS president Sir David Tweedie.
Sir David, who became one of the most globally-recognised accountants after running the UK and then international standard setters, said during an online discussion that the report fails to show the auditor’s opinion, reports The Herald.
“The audit report at present is hopeless. It’s full of who is repsonsible for what, and it’s difficult to find the auditor’s opinion,” he stated.
Sir David wants more information presented to investors about the contentious policies used by companies, and information on going concern assumptions.
It is not the first time that Sir David has spoken out for more value to be gleaned from the audit report. In January he said that moves by the international audit standard setters (IAASB) to make the audit a more vital part of investment analysis would serve to highlight “good” audit work by the accountants.
“Everyone knows a bad audit – now that it’s splattered all over the pages of the press as a company gets into serious trouble, undetected by the auditor,” he added. “But no one knows when there has been a good or outstanding audit.”