The new and revised Auditor Reporting standards are responsive to calls from investors and other users of audited financial statements for more informative and relevant auditor’s reports based on the audit that was performed. This new and revised Auditor Reporting standards include new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report, and a number of revised ISAs, including ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and ISA 570 (Revised), Going Concern. Example reports illustrating various circumstances are included in the new and revised Auditor Reporting standards. The new and revised Auditor Reporting standards will be effective for audits of financial statements for periods ending on or after December 15, 2016.
New international auditing standards issued Thursday are designed to change how auditors communicate about their work in their reports.
Auditors of listed entities’ financial statements will be required to communicate “key audit matters” in auditor’s reports, according to the standards released by the International Auditing and Assurance Standards Board (IAASB).
The IRS issued new procedures taxpayers should use to make accounting method changes. Rev. Proc. 2015-13 contains the rules taxpayers should follow to make non-automatic changes in methods of accounting, which are changes that require the IRS’s consent. It also contains the procedures for applying for automatic changes in accounting method, which do not require the IRS’s consent. Rev. Proc. 2015-14 contains the list of automatic changes in accounting procedure to which the automatic change procedures in Rev. Proc. 2015-13 apply.
A FASB initiative designed to simplify GAAP has yielded a standard that eliminates the concept of extraordinary items from GAAP.
FASB’s simplification initiative is designed to reduce cost and complexity while maintaining the usefulness of the information provided to users of financial statements.
Accounting Standards Update No. 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, describes the change. It is the board’s first accounting standards update of 2015.