1. The revised ISA 700 requires statutory auditors to disclose in their Audit Reports:

1. The major audit risks that impacted on the audit and their response to those risks, and

2. their assessment of materiality for the audit.

Both of these proposals were controversial. Discuss whether or not these changes improved the quality of audit reporting, giving your opinion on the issues.

2. a) What are the requirements of the Sarbanes Oxley Act in connection with Internal Controls?

b) How does this compare with the current position in the UK?

c) Which approach do you prefer and why?