ISA 700: Theoretical Aspects and Main Concepts of Updated Structure of Audutor’s Report

Nana Sreseli


The auditor's report is an important document reflecting the audit results of the financial statements and a final result of the audit. But, nevertheless, it is a standard report compiled based on the compliance / non-compliance principle.The auditor’s report formulated under  this principle, covers the information of a minimal volume regarding both an audited organization and the auditing  processes.  Due to a scarce informativeness of the existing report, a demand insisting to introduce more transparent and informative report about the audited object, increased towards the auditors.  Increase of interest of the users of financial reporting towards the information was conditioned also   by a circumstance that the auditors’ reports were often vague for the users, while the auditor’s opinion  on where the risks of the financial reports were hidden, remained unclear. This factor was lowering considerably the users  confidence to  reliability of the auditor’s report.  Because of the above mentioned   the auditors’ reports formulated in a standard style, have recently become a subject of criticism by a wide circle stakeholders and users of the financial reporting. Thus, an inevitable agenda occurred, requiring  to reflect in the auditor’s report  with a maximally permitted wide ranges the peculiarities and individual features of the organizations. Such a requirement, if taken into account, could improve considerably  a  level of both the transparency and the informativeness of  the auditor’s report. A growing interest of the users to the transparency and informativeness of the auditor’s report was conditioned by the scale and deepness of  the global economic crisis. Just  because of scandals cascade and financial crises in major international companies  a style and a textual structure of  the auditor’s report has attracted a particular attention


: Auditor’s Report; Main issues of audit; Substantial uncertainty; Fair presentation framework; Compliance framework


ISA 700-(Revised), Forming an opinion and Reporting on Financial Statements

ISA 701-(NEV), Communicating Key Audit Matters in the Independent Auditor’s Report.

ISA 705 – (Revised), Modifications to the Opinin in the Independent Auditor’s Report,-

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Nana Sreseli - Audit, Theory, 2013.

Interpretation and application of International Standards on Auditing-Stefen Cillings Wiley, 2015.

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