The Audit Reporting Debate: Seemingly Intractable Problems and Feasible Solutions
Posted: 14 Apr 2012
Date Written: April 14, 2012
While the audit reporting debate has a long history, a number of recent regulatory initiatives and policy reviews increase the likelihood of change in this area. The purpose of this study is to use this momentum and examine whether there is consensus between audit report users and auditors with regard to the form and content of the audit report. This seems necessary because past audit reporting reforms have failed due to a lack of common ground. Based on interviews with users and auditors, we conclude that reaching a level of consensus seems feasible. Using these insights, we propose an alternative audit reporting model which may significantly reduce the information gap between users and auditors and improve transparency on the quality of audit practice.
Keywords: audit reporting, history, information gap, transparency, value of audit
JEL Classification: M41
Suggested Citation: Suggested Citation