s part of the convergence project between International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB), the revised conceptual framework replaced the qualitative characteristic of reliability by faithful representation. This change is notable because reliability was previously deemed one of the most important concepts in financial reporting and was explicitly linked to the notion of objective auditing. In particular, this change becomes problematic for auditors in the context of a trade-off between relevance and reliability since there is no longer a need to provide reliable financial information, but solely faithful representation of financial information.

Requirement

Critically evaluate the replacement of the qualitative characteristic of reliability by faithful representation in the context of auditing profession. Addressing the following questions could facilitate such critique:

• How does the adoption of faithful representation impact the way auditors verify relevant information and the presence of information risk?

• What other sources of evidence become relevant when conducting audit?

• How does the adoption of faithful representation affect reporting and

  communication of auditors findings with relevant users?