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Accountants to have clear roles in corporate due diligence
Published:
December 22nd, 2009 4:30pm
Source:
TA
The Australian Accounting Professional and Ethical Standards Board (APESB) has helped to clarify the due diligence committee reporting formats and professional obligations of Australian accounting firms by issuing a new standard.
The standard, APES 350 Participation by Members in Public Practice in Due Diligence Committees in connection with a Public Document, defines the three primary roles external accountants can play on corporate due diligence committees, namely as a member, observer or reporting person, and highlights key considerations for accountants when preparing a due diligence sign-off.
APESB chair Kate Spargo said previously sign off practices were varied.
“Now accountants in this highly-specialised area have a standardised format for their due diligence sign-off. In the same way the business community is familiar with standardised audit reports, the new due diligence sign-off format will allow those involved in due diligence committees to better compare and interpret these reports,” Spargo explained.
In Australia due diligence committees are established by companies in connection with public documents relating to securities offerings and other public transactions in order to investigate issues, including legal and financial, that may require disclosure in a document.
The board said APES 350 was developed in response to calls from the Financial Reporting Council and the profession, and was revised after consideration of a wide range of comments received during the exposure draft period.
The new standard is effective from 1 February 2010 and early adoption is permitted.
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