Very truly yours, Carlos A. Sabater Global Managing Director, Audit Deloitte Touche Tohmatsu Limited APPENDIX 1 RESPONSE TO REQUESTS FOR SPECIFIC COMMENTS to the detailed questions included in the EM accompanying the Proposal DTTL’s responses IAASB’s are set forth in this appendix. These responses provide additional context for perspectives DTTL’s contained in the Executive Summary and include more specific and detailed observations related to the various aspects of the Proposal. IAASB’s 1. Whether respondents agree with how the enhancements resulting from the new and revised Auditor Reporting standards have been addressed in proposed ISA 800 (Revised) and proposed ISA 805 (Revised) as explained in paragraphs 10–32 of this EM. If not, respondents are requested to provide their rationale as to why they do not support the proposals and, where applicable, suggest alternative approaches. Proposed ISA 800 (Revised) DTTL agrees with how the enhancements resulting from the Auditor Reporting standards have been applied by the Board in proposed ISA 800 (Revised). DTTL did, however, note that language was introduced in paragraph A13 to further clarify the term in the context of proposed ISA 800 (Revised). In ISA 720 (Revised), The “other information” this term has a very specific to Other Information Auditor’s Responsibilities Relating (“ISA 720”), and limited meaning and it will be confusing to users to amend and extend the scope to “reports prepared to meet the information needs of specific to do so in an application and other users.” Further, explanatory material paragraph without carefully considering how this additional wording integrates with ISA 720 may result in unintended consequences. DTTL recommends striking the second sentence of paragraph A13. Proposed ISA 805 (Revised) DTTL has fundamental concerns with how the enhancements in the Auditor Reporting standards have been addressed in proposed ISA 805 (Revised). These concerns encompass the following areas: Going Concern. DTTL concurs that it is in the public interest to include a GC section in the report of a single financial statement or of a specific element of a financial auditor’s statement. GC information is always fundamental to the of a single users’ understanding financial statement or of a specific element of a financial statement. ISA 570 (Revised), in the report pertaining to the Going Concern (“ISA 570”), requires communication auditor’s existence of a material uncertainty related to events or conditions that may cast significant
Very truly yours, Carlos A. Sabater Global Managing Director, Audit Deloitte Touche Tohmatsu Limited APPENDIX 1 RESPONSE TO REQUESTS FOR SPECIFIC COMMENTS DTTL’s responses to the detailed questions included in the IAASB’s EM accompanying the Proposal are set forth in this appendix. These responses provide additional context for DTTL’s perspectives contained in the Executive Summary and include more specific and detailed observations related to the various aspects of the IAASB’s Proposal. 1. Whether respondents agree with how the enhancements resulting from the new and revised Auditor Reporting standards have been addressed in proposed ISA 800 (Revised) and proposed ISA 805 (Revised) as explained in paragraphs 10–32 of this EM. If not, respondents are requested to provide their rationale as to why they do not support the proposals and, where applicable, suggest alternative approaches. Proposed ISA 800 (Revised) DTTL agrees with how the enhancements resulting from the Auditor Reporting standards have been applied by the Board in proposed ISA 800 (Revised). DTTL did, however, note that language was introduced in paragraph A13 to further clarify the term “other information” in the context of proposed ISA 800 (Revised). In ISA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information (“ISA 720”), this term has a very specific and limited meaning and it will be confusing to users to amend and extend the scope to “reports prepared to meet the information needs of specific users.” Further, to do so in an application and other explanatory material paragraph without carefully considering how this additional wording integrates with ISA 720 may result in unintended consequences. DTTL recommends striking the second sentence of paragraph A13. Proposed ISA 805 (Revised) DTTL has fundamental concerns with how the enhancements in the Auditor Reporting standards have been addressed in proposed ISA 805 (Revised). These concerns encompass the following areas: Going Concern. DTTL concurs that it is in the public interest to include a GC section in the auditor’s report of a single financial statement or of a specific element of a financial statement. GC information is always fundamental to the users’ understanding of a single financial statement or of a specific element of a financial statement. ISA 570 (Revised), Going Concern (“ISA 570”), requires communication in the auditor’s report pertaining to the existence of a material uncertainty related to events or conditions that may cast significant