ISA 700: THEORETICAL ASPECTS AND MAIN CONCEPTS OF UPDATED STRUCTURE OF AUDUTOR’S REPORT
ISA 700: THEORETICAL ASPECTS AND MAIN CONCEPTS OF UPDATED STRUCTURE OF AUDUTOR’S REPORT

Summary/Abstract: The auditor's report is an important document reflecting the audit results of the financial statements and a final result of the audit. But, nevertheless, it is a standard report compiled based on the compliance / non-compliance principle. The auditor’s report formulated under this principle, covers the information of a minimal volume regarding both an audited organization and the auditing processes. Due to a scarce informativeness of the existing report, a demand insisting to introduce more transparent and informative report about the audited object, increased towards the auditors. Increase of interest of the users of financial reporting towards the information was conditioned also by a circumstance that the auditors’ reports were often vague for the users, while the auditor’s opinion on where the risks of the financial reports were hidden, remained unclear. This factor was lowering considerably the users confidence to reliability of the auditor’s report. Because of the above mentioned the auditors’ reports formulated in a standard style, have recently become a subject of criticism by a wide circle stakeholders and users of the financial reporting. Thus, an inevitable agenda occurred, requiring to reflect in the auditor’s report with a maximally permitted wide ranges the peculiarities and individual features of the organizations. Such a requirement, if taken into account, could improve considerably a level of both the transparency and the informativeness of the auditor’s report. A growing interest of the users to the transparency and informativeness of the auditor’s report was conditioned by the scale and deepness of the global economic crisis. Just because of scandals cascade and financial crises in major international companies a style and a textual structure of the auditor’s report has attracted a particular attention.

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