In a joint article, SMU Associate Professor of Accounting (Practice) Themin Suwardy discussed the challenges in the implementation of enhanced auditor reports. He explained that the new requirement to disclose what are known as key audit matters in an enhanced auditor report is aimed at helping investors and other stakeholders better understand the basis of an opinion by auditors of listed firms
Associate Prof Suwardy noted that auditors are ready for the new era of enhanced auditor reporting in Singapore, but stressed that challenges remain in changing entrenched mindsets of some boards towards the disclosure and use of enhanced auditor reports. He also cited several observers, who opined that compliance cost is often the biggest obstacle, apart from a mindset change. Observers say there is no one-size-fits-all approach, so auditors and companies have the freedom to decide what is finally included in the enhanced auditor's report.