Audit reports in the UK - part 2

In this lesson

1. 0:00 Directors' remuneration report audit requirements
2. 0:46 Reporting by exception on governance compliance
3. 2:23 Recent developments in auditor reporting
4. 3:47 Communicating with those charged with governance
5. 4:51 Additional requirements for public interest entities
6. 5:56 XBRL tagging and auditor responsibilities

About this lesson

You'll explore reporting on directors' remuneration, exceptions to the Corporate Governance Code, and specific disclosure requirements for public interest entities. This content is essential for the Audit and Assurance (AA) module and builds your understanding of professional reporting standards and the auditor's responsibilities under ISA UK 260. The video covers the auditor's obligation to specify which sections of the directors' remuneration report have been audited, and how to report by exception when information is inconsistent with your audit knowledge. You'll learn when exceptions must be reported—for instance, if the directors' statement about fair and balanced reporting conflicts with what you've discovered, or if the audit committee section doesn't address matters you've communicated. Understanding these exceptions helps you avoid widening the expectations gap and ensures stakeholders know exactly what you've verified. For public interest entities, you'll discover additional audit report requirements: confirming your independence, disclosing the auditor's appointment details and engagement period, explaining your capability to detect fraud and irregularities, and listing any non-audit services provided. The lesson also explains your communication obligations to those charged with governance, including reporting on business risks, significant accounting policies, internal control effectiveness, and any going concern issues or suspected non-compliance with laws or regulations. Finally, you'll understand the auditor's role regarding XBRL tagging of financial data for tax reporting. While you're not required to provide assurance on XBRL tags themselves, you may offer related services such as training or agreed-upon procedures—but only after carefully evaluating self-review and management threats to ensure your independence remains intact.

Duration: 8m