Benefits associated with LFA report
AN AUDITOR’s report is essential to the continued relevance of the audit profession and also the securities market.
Investors want more relevant and comprehensive information useful for investment decision making. Below are some of the merits associated with the Long Form Audit report: Auditors now have a renewed focus on reporting important matters thereby improving overall audit quality. Clearer and simplified version of the audit report. This enables investors to better understand the performance and position of companies invested in. The report has become more relevant to investors given enhanced financial reporting in their interest. Enhanced interaction and communication between the auditors and investors. This enables investors to understand the relevance of auditing. Improved interaction and communication between auditors and those charged with governance. This will bring management and those charged with governance to task and increase attention to detail. Key Audit Matters will better equip investors to engage with management on issues highlighted in the audit report. Potential investors can also have highlights of the magnitude of business risk of companies they want to invest in. The Long Form Audit report is company specific hence investors gain more detailed insight into the company through the eyes of the auditor. There is greater transparency in audit reporting regarding name of engagement partner as well as ethics requirements. This enables investors to clearly identify the respective accountable auditors of companies invested in. Greater understanding of the financial statements adds credibility to the audit process. This will increase confidence in both audit and financial reporting. Previous audit reports were too summarised. The onset of the Long Form Audit report now has improved disclosure in both form and content to the benefit of the investing public.
Upcoming AGMs
CBZ Holdings Limited, La Fontaine Restaurant, Meikles, Harare, 27 April, 1500 hrs. Old Mutual Zimbabwe, Meikles, Harare, 27 April, 1500 hrs.