Before the recent changes, the auditors report had been always been simple and concise when

it comes
to issuance a pass or fail opinion on the report. However, the time has come to gear towards a more
transparent and informative issuance of audit report. A seminar entitled The seminar entitled was
held in APC MPH1 on by by Mr. Jade Waje from SGV who is an APC Alumni and APC rotaractor
president.

As discussed by Sir Jade, the highlight of the new auditors report is the Key Audit Matters section. Key
audit matters, which refers to the significant parts of audit in the financial statements of the client, is
now included in the format of auditors report. This change is however is limited only for listed
companies. In determining the KAM, Sir Jade mentioned that professional judgment must be exercised
in determining the material parts that must be communicated in the report. Other changes that reflects
a more detailed auditors report includes: expressing an opinion and basis for opinion first in contrast
with the previous format being the last part of the audit, the managers responsibility for going concern,
auditors report for other information and a lot more.

Many stakeholders especially for stockholders as much as possible wants a more detailed and
informative audit report because it gives an understanding of the financial statements from an unbiased
and independent point of view. Given that this has always been the case since the old days, I have come
to question why the concern for transparency was not existent in the audit report before. Considering
that as accountants, we must be prudent at all times. It is innate for us to think that the case for
auditors report should have always been to speak the language that the investors or users really want
to know when it comes to the entitys reported condition. Is it because a more transparent audit report
may only signal concerns and vulnerabilities for users especially for investors? Should the concern for
bad impression on the client be really of more concern of?

With all the changes in the format and added responsibilities in the new report, a more relative
discussion with the client, auditor, those charged with governance, and investor is made. It is now more
lengthy and detailed. It has now surpassed the pass or fail criteria. Given that request and concerns of
the users are now granted, the change towards transparency would impose more costly fee since more
work and expense will be involved; prompting small entities to refuse having their financial statements
audited because the change may be costly on their part.

It was just a few months after I took the Auditing theory class when the auditors report has significantly
changed. However, it does not come as a surprise after all since the change is actually a sign of
continuous improvement. This proves that the standard setting body is adaptive to the changes that are
relevant for todays time and age. Even as young as we are, we are very blessed to be informed with the
timely updates from an experienced person from that field, with organizers that successfully facilitated
the event, and professors that coordinated the event which proves learning is an essential part of
growing as future professionals.