Harmonization of the auditor's report

Gangolly, Jagdish; Hussein, Mohamed; Tam, Kinsun

doi:10.1016/s0020-7063(02)00172-3

Cited by 19 publications

(33 citation statements)

References 3 publications

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“…The importance of the auditor's report was emphasised by the Cohen Commission (AICPA, 1978, p.71): "The auditor's report is almost the only formal means used both to educate and inform users of financial statements concerning the audit function." Gangolly et al (2002) also indicated that, while the auditor's report is important in its own right, it can also contribute to the improvement of accounting and auditing standards. It is also important to note that the auditors' reports seen and evaluated by the group that we sampled, since we are talking about the stock market, are mainly auditor reports produced by Egyptian auditors who are affiliated with global auditing firms (e.g., KPMG, Delloite and Touché, PriceWaterhouseCoopers, and Ernst and Young).…”

Section: Testing Hypothesis 3: Annual Report Sectionsmentioning

confidence: 99%

An investigation of the views and perceptions of external users of corporate annual reports in emerging economies: the case of Egypt

Dahawy

Samaha

2010

IJAF

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The purpose of this paper is to examine how users of company annual reports in the emerging market of Egypt view those reports, and to compare the results with the findings of Mirshekary and Saudagaran (2005) in Iran. Each study is based on a survey of different but comparable user groups in the respective country.The data reported in this study were collected through a questionnaire survey, covering six user groups. The 72 responses received were analysed using the Kruskal-Wallis one-way ANOVA test.The results reveal that most use annual reports for obtaining information for financial decisions. The paper also reveals that, in comparison with developed markets, Egyptian users depend more on annual report information than on advice from stockbrokers and friends or on tips and rumours. The respondents, in general, ranked the auditors' report, notes to the financial statements and the balance sheet as the three most important parts of the annual report. However, the respondents differed in their rating of the importance of different sections of the annual report. Despite the lack of access to these reports by the general public and lack of trust in information, the majority of users view annual reports as the most important source of company information.The results further indicate that the ranking reported by users in Egypt is notably different from that reported in Iran. This supports the research stream that aims to study accounting at single-country levels. It also sends the message that developing countries are different and face different problems from developed ones. Therefore, there might be a need to reconsider the one-size-fits-all standards that are recommended by the International Accounting Standards Board (IASB). There is an important level of adjustment which a country that imports accounting standards must make to ensure that they do not conflict with the local socioeconomic culture.

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Section: Testing Hypothesis 3: Annual Report Sectionsmentioning

confidence: 99%

An investigation of the views and perceptions of external users of corporate annual reports in emerging economies: the case of Egypt

Dahawy

Samaha

2010

IJAF

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“…The harmonization of auditing reports is identified as the process, which aims at the reduction of the audit practices diversity and ensures their convergence in matter of the audit communicative means (Hussein, Bavishi, & Gangolly, 1986;Archer, Mcleay, & Dufour, 1989;King, 1999, Gangolly, Hussein, Seow, & Tam, 2002Fakhfakh & Fakhfakh, 2010). It aims at minimizing the divergences among the normative national regulations that govern the communications between the auditors and other stakeholders.…”

Section: Implication Of Results and Final Remarksmentioning

confidence: 99%

The readability of international illustration of auditor's report: An advanced reflection on the compromise between normative principles and linguistic requirements

Fakhfakh

2015

Journal of Economics, Finance and Administrative Science

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Content of audits Understandability Readability and determinants of legibility a b s t r a c tThe independent auditors periodically publish reports that summarize the audit results. These reports reinforce the financial communication and reliability of accounting information. International Standards on Auditing (ISA) determine the content of audit reports and the quality of audit results. Theoretically, the audit standardization must model intelligible and clear reports for readers. Compliance with linguistic principles contributes to the improvement of the structure of audit reports. In practice, the effectiveness of these reports is criticized because users do not understand the audit information. In order to improve the content of audit reports, International Federation of Accountants (IFAC) had revised International Standards on Auditor's report: ISA 700: Forming an opinion and reporting on financial statements. Linguistically, standardized audit reports could be unreadable by many users of financial statements. This article discusses the linguistic problems related to the preparation of reports. This discussion focuses on the audit reports which are illustrated by the International Standards on Auditing. The results show that in the presence of conflicting requirements (auditing standards versus linguistic principles), independent auditors must optimize the presentation of their reports.

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“…More recently, new evidence has assessed harmonisation of the auditor's report. Gangolly et al (2002) explore the audit report of 450 companies from 33 IFAC member countries at two points in time, i.e., before and after ISA 13 was issued (this international standard provides guidance on the form and content of the auditor's report). They provide evidence that the degree of material harmonisation has increased.…”

Section: Previous Literature On Auditing Harmonisationmentioning

confidence: 99%

Audit Reports on Financial Statements Prepared According to IASB Standards: Empirical Evidence from the European Union

Benau

Zorio

2004

Int J Auditing

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This paper examines the audit report of 147 firms from the European Union that prepare their financial statements in compliance with the standards developed by the International Accounting Standards Board. Bearing in mind that the consolidated accounts of listed companies will follow IAS from 2005 onwards, the purpose of this paper is to provide some insight into the current outcome of the statutory audit on this information. Interesting conclusions are drawn from this empirical study with regard to the auditing standards applied, the wording used and the differences observed between reports produced by auditors from the big firms and reports from different European countries. The need to harmonise the auditing field is discussed under the results obtained, with the final aim to contribute to the standard‐setting debate on the creation of a high quality financial reporting system in the European Union.

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Harmonization of the auditor's report

Cited by 19 publications

References 3 publications

An investigation of the views and perceptions of external users of corporate annual reports in emerging economies: the case of Egypt

An investigation of the views and perceptions of external users of corporate annual reports in emerging economies: the case of Egypt

The readability of international illustration of auditor's report: An advanced reflection on the compromise between normative principles and linguistic requirements

Audit Reports on Financial Statements Prepared According to IASB Standards: Empirical Evidence from the European Union

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