On an international level, other countries have also discussed and implemented expanding the audit report to include

Question:

On an international level, other countries have also discussed and implemented expanding the audit report to include more detail from auditors about critical audit matters (CAM). The United Kingdom (UK) has already moved to using an expanded audit report. An example of the new audit report format can be found in the annual report of GlaxoSmith-Kline plc (GSK). Visit GSK’s investor website and download the most recent annual report. Find the auditor’s report in the Financial Statements section of the annual report.

Required

a. Who are the auditors for GSK?

b. What are some differences in the U.K. auditor’s report model compared with the current U.S. auditor’s report model for public companies?

c. Which report model do you prefer and why? Would your answer change based on the type of user you are (lender, customer, investor)? Would your answer change if you were the preparer or auditor of the financial statements?

Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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