Assurance on management commentary: Where next?
ICAS has published its report summarising the feedback and comments received on its Balanced and reasonable discussion paper .
The report summarises the key messages from respondents and participants in the various events and meetings hosted by ICAS.
Read feedback on balanced
and reasonable discussion paper
Key messages from the consultation process were:
- Support for the proposals, with ICAS applauded for stimulating debate.
- 44% of responses stated that there was a need to demonstrate user demand for this type of assurance.
- The responses demonstrated some confusion over the extent of assurance currently provided by auditors on information contained in the front-half of annual reports.
- 25% of respondents favoured monitoring the impact of fair balanced and understandable requirement before proposing any more change.
- An exercise to demonstrate the benefits compared to the cost of the additional work was mentioned by 41% of respondents.
There was a need to revisit the auditor liability regime which could be an obstacle to this type of work.