Comparison And Enlightenment Of The New And Old International Auditor's Report Standards

At the beginning of this century, there were a series of accounting and auditing scandals around the world, which has attracted the attention to the audit problems. From then on IAASB has been studying deeply the more transparent and high quality auditing standards. To protect the public interest, IAASB has revised a lot of international auditing standards by perfecting the auditing-standard-making process and modifying audit risk model. Therefore transparent and comparison of the independent auditor's report will be improved largely. ISA 700(Revised): The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. ISA 705: Modifications to the Opinion in the Independent Auditor's Report. ISA 706: Emphasis of Matter Paragraphs and Other Matters Paragraphs in the Independent Auditor's Report. Auditor's report is the only tool that connects the auditor and the user of it and it shows the response of the audit field to the criticism and demand of the public. By comparing the new and old international auditing standards this articles discussed advantages and improvements of new standards from point of how to select, format and content, variety of the criticism. Meanwhile the new audit theory including audit objective, auditor's responsibility, audit expecting gap were also discussed here.Now we are living in an information society, decision-making is closely connected with information-providing. Possibility of incorrect financial information exists and can't be avoided. Even in the USA, where the law system is highly perfect, accountant malpractices, scandals and audit failure can't be avoided, and in China things is going worse and worse. After three big audit case of Hainan Zhongshui guoji, Beijing Changcheng jidian and Shenzhen Yuanye , in 1996 Qiongmingyuan, Hongguangshiye and Dongfang guolu appears and later Yinguangxia, Maikete. All these cases lead the rethinking of auditing standards and report in the nation.The author has referred abundant literatures and found that the audit's report has been always the focus of all fields. However most research have concentrated on the audit-standard-making and ignored making direction for auditors. Through the research of audit's report standards modification we found the content are limited to the standard there were little analysis of the variety of audit objective, extending of the audit responsibility and audit risk, affected by the improvement of audit expect gap and the change of economic environment.The author analyzed the improvement of the new international auditing standards...