John Selwood's audit clinic
John tackles the difficult subject of Brexit, again. This time the focus is on the audit report.
I was reading recently that auditors are starting to include wording in their audit reports that distances the auditors from Brexit-related issues. Should audit reports be including a standard paragraph to limit the auditors’ liability and where can I get further guidance?
At the risk of appearing to go against a current trend, it is my view that audit reports should not include any sort of boilerplate wording disclaiming the auditors’ responsibility for Brexit-related issues. This is not to say that Brexit will not have an impact on the audit report; it could, but its effect will vary from one audit to another.