My previous post addressed three aspects of the auditor’s report:The PCAOB* proposal to require a discussion of “critical audit matters”; Whether use of non-authoritative GAAP should be given special mention by the auditors; and The opinion language that financial statements are “fairly presented in accordance with GAAP.”
This post is a continuation of #3, above. It is derived from the thoughtful and insightful comments I received from David Damant. David’s professional background (more on his education, later) is in financial analysis and accounting standards. Among his many high profile roles, for six years (2004 – 2010) he served as the first independent chair of the Consultative Advisory Group (CAG) of the International Auditing and Assurance Standards Board (IAASB); and was a member of the former IASC board (1986 – 2000).
I have structured this post as a dialogue between David and me, based on our series of email [Read More...]