The Readability of Standardised Reports by the International Federation of Accountants
Published: 2013
Author(s) Name: Mondher Fakhfakh |
Author(s) Affiliation: Associate Professor, Department of Accounting, University of Sfax, Sfax 3018, Tunisia.
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Abstract
The International Federation of Accountants has revised several standards that standardize audit reports. The objective of
these revised standards is to improve financial reporting. So the purpose of this paper is to examine the readability of reports which have
been standardised by three International Standards on Auditing (ISA 700, ISA 705 and ISA 706). The Measurement of the understandability
of reports is achieved in terms of the linguistic characteristics of standardised reports wording. The results show that the standardised audit
reports are not fully readable. These reports do not fulfill their informative function for all users of financial statements. Our investigation
discusses the information value of reports published by ISA and the implications for the Stakeholders.
Keywords: IFAC, ISA, Audit Reports, Readability, Determinants of Understandability
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