Question 18 Marked out of 3.00 The audit report has grown from a small number of relatively standardised pages to over ten pages in length to accommodate additional detail. This is a demonstration of the increased pressures placed on auditors as users demand more added value from the service. This increased transparency arguably will: Statement 1: Enhance audit quality with specific disclaimer statements in audit reports becoming more important. Statement 2: Allow audit reporting to a wider group of stakeholders than just the shareholders and giving rise to liability and responsibility. Statement 3: ISA 701 revision requiring extended narrative audits and for audit reports to contain more, providing value for money. Statement 1 Statement 2 Statement 3 True True True False True True True False False False False True O O

Question 18 Marked out of 3.00 The audit report has grown from a small number of relatively standardised pages to over ten pages in length to accommodate additional detail. This is a demonstration of the increased pressures placed on auditors as users demand more added value from the service. This increased transparency arguably will: Statement 1: Enhance audit quality with specific disclaimer statements in audit reports becoming more important. Statement 2: Allow audit reporting to a wider group of stakeholders than just the shareholders and giving rise to liability and responsibility. Statement 3: ISA 701 revision requiring extended narrative audits and for audit reports to contain more, providing value for money. Statement 1 Statement 2 Statement 3 True False True True True False False False False True True True