The MIA has recently sent a comment letter to the International Auditing and Assurance Standards Board (IAASB) on its Invitation to Comment (ITC): Improving the Auditor’s Report, which sets out the indicative direction of the board’s future standard-setting proposals to improve how and what auditors report in accordance with International Standards on Auditing (ISAs).
 

In its comment letter, the MIA did not comment on all the questions that have been posed by the IAASB in its ITC. The MIA is a member body of FEE (Fédération des Experts comptables Européens - Federation of European Accountants) and as such supports the comment letter that has been sent by FEE to the IAASB. However the Institute made some further considerations relative to FEE’s comment letter.
 

In FEE’s response on the basis upon which information is to be included in the auditor commentary section in the audit report, FEE is supportive of including in the auditor’s report information on the audit approach, more specifically on the significant audit risks. However the MIA considers this matter differently. The MIA believes that by disclosing information about the significant audit risks, the auditor would be generating original information about the audited entity and we do not think that the auditor should be required to provide such information. 
 

The MIA agrees with FEE’s view that the auditor should report on the consistency of the management report with the financial statement for the same financial year. However the MIA does believe that the auditor should also state that, based on his knowledge and understanding of the entity and its environment obtained during the course of the audit, the management report as a whole suitably presents the company’s position, the opportunities and principal risks and uncertainties of its likely future developments. We do not support this last statement because we think that disclosures/statements relating to an entity’s likely future developments should remain the responsibility of directors.