Standards & Guidance
ICAS warns against attempt to extend directors' responsibilities
The International
Audit and Assurance Board (IAASB) has been accused of attempting to impose
additional burdens upon directors through a revised accounting standard.
In its response to a consultation on the proposed
international standard on auditing 580, the
Institute of Chartered Accountants of Scotland (ICAS) warned against a
proposal to require directors to confirm to auditors that internal control is
adequate for preparing and presenting financial statements.
This, ICAS argued, could impose a significant additional
burden on management and lead directors to be unable to make the required
representations to their auditors. The standard requires the auditor to disclaim the
audit opinion if these representations are not given.
James Barbour, ICAS director of accounting and auditing,
said: “This standard is attempting to regulate for companies in the US … In the
UK, directors’ responsibilities are already fairly onerous, and it is completely
inappropriate for an auditing standard to attempt to extend these
responsibilities”.
Links
International Audit and Assurance Board
Institute of Chartered Accountants of
Scotland
May 2007
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