MNP Comment Letter - Reporting on Audited Financial Statements Exposure Draft (International)

Category: Assurance

MNP Comment Letter - Reporting on Audited Financial Statements Exposure Draft (International)

Excerpt

We do not agree that the introduction of key audit matters will enhance the usefulness of the auditor’s report. By introducing Key Audit Matters there is a risk of overreliance on those matters by readers. Readers may ignore other aspects of a company’s financial statements when making investment related decision. In addition, there is a risk that the inclusion of Key Audit Matters may be viewed by securities regulators and other users of the financial statements as, essentially, a “soft qualification”. Key Audit Matters are to be discussed with management, with mutual agreement reached as to what is included. This may create tension between auditors and management. There is also a lack of specific guidance on what matters constitute key audit matters, which may result in strained relationships or potential for auditor shopping by clients.

MNP Exposure - Draft Reporting on Audited Financial Statements - International

Contact a member of MNP's Financial Reporting Team

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.