Innovation in the International Standards for the New Independent Audit Report


  • Jorge Manoel Faculdades Metropolitanas Unidas, São Paulo, Brazil
  • Luiz Felipe Quel Faculdades Metropolitanas Unidas, São Paulo, Brazil



Audit, financial statements, independent auditor report, user´s expectation gap


Historically, the independent audit profession faces a relevant challenge relating to the close of the users’ expectation gap of its report on the financial statements of companies. Throughout the years, studies of this matter were made to identify main causes. As a result, a new standard on the independent auditors’ report was internationally approved, which is applicable for financial statements of listed companies for the year ended on or after December 15, 2016 (for Brazilian listed entities, December 31st, as locally regulated). Among the main changes innovating the new independent audit report aiming to close the users’ expectation gap are: the reorganization of the paragraphs of the auditor report to reflect the importance of the subjects; the confirmation by the auditor of his independence in relation to the company he is auditing; material uncertainty related to the entity´s ability to continue operating (going concern concept) described in a specific section; the inclusion of a new paragraph for listed; companies detailing key audit matters (KAM) found during the audit (disclosure is optional for other companies); new section on other information that accompany the financial statements (for example management report) and the results of the audit procedures applied to it; the evaluation of management of its responsibility relating to the capacity of the company to continue in operation (going concern concept); a more comprehensive description of auditor’s responsibilities, including with respect to going concern. These changes compose the reply of the audit profession to close the user´s expectation gap in relation to the new auditor report. The one relating to the inclusion of the new paragraph detailing key audit matters identified during the audit process is key to respond to the users of the audit report and give them additional information for his sensitivity market investment analysis and decision making process.