Indexed on: 09 May '16Published on: 05 Jan '16Published in: Asian Review of Accounting
Asian Review of Accounting, Volume 24, Issue 1, February 2016. Purpose The purpose of this paper is to measure the understandability of the illustrations provided by the International Federation of Accountants (IFAC) in terms of the structural features of international auditors’ reports with modified opinions. Design/methodology/approach Measurement of the legibility of reports illustrated by the revised ISA705 and ISA 706. This paper discusses the compliance level of modified auditors’ reports with the linguistic rules. Findings It was found that the standardized illustrations of modified reports are not fully understandable by users of financial statements. The illustrations of modified auditors’ reports are not compliant with several linguistic rules. Originality/value This paper provides new original investigation about the linguistic features of illustrations provided by the ISA 705 and ISA 706. This article discusses the level of unintelligibility of standardized auditors’ reports and the implications for Stakeholders.