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6. Length of audit reports has undergone some drastic changes ranging from a one paragraph audit report some thirty years ago to about three pages.
6. Length of audit reports has undergone some drastic changes ranging from a one paragraph audit report some thirty years ago to about three pages. Three decades ago, a typical statutory audit reports consisted of one paragraph which informed the reader whether or not the financial statements showed a true and fair view, with perhaps a second paragraph to offer explanation if the report was modified in some way. However, for an accounting period beginning on or after 15th December 2016 a typical audit report even for a typical private Company runs to three closely-typed pages even without content specific for a particular client. Required: (i) Explain the reasons for apparently inevitable lengthening of audit report in recent decades. (ii) With specific reference to the most recent changes, discuss the extent to which readers have benefited or otherwise as a result of the longer audit report format. (May 2019, C2)
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