Auditor Communication in an Evolving Environment: Going Beyond Sas 600 Auditors' Reports on Financial Statements

Posted: 14 Nov 2006

See all articles by Mahbub Zaman

Mahbub Zaman

Hull University Business School

Stuart Manson

University of Essex

Abstract

In 1993 the Auditing Practices Board issued an expanded audit report, SAS 600 Auditors' Reports on Financial Statements, in an attempt to educate users and to clarify certain matters pertaining to the audit function. This paper investigates the extent to which the new audit report, SAS 600, has been successful in aligning the views of auditors, preparers and users about issues dealt with in the expanded audit report, and the extent to which the three groups considered that it would be useful for additional matters, including corporate governance, to be reported upon by the auditor. Our findings suggest that SAS 600 has been successful in clarifying the purpose of the audit and the respective responsibilities of auditors and directors. However, to meet the expectations of users and to add more value, the audit report needs to provide more information about the findings of the audit.

Keywords: auditors' report; auditing, communication, governance

JEL Classification: M41, M42

Suggested Citation

Zaman, Mahbub and Manson, Stuart, Auditor Communication in an Evolving Environment: Going Beyond Sas 600 Auditors' Reports on Financial Statements. British Accounting Review, Vol. 33, pp. 113-136, 2001. Available at SSRN: https://ssrn.com/abstract=942194

Mahbub Zaman (Contact Author)

Hull University Business School ( email )

Hull, HU6 7RX
United Kingdom

HOME PAGE: http://www.mahbubzaman.com

Stuart Manson

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

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