The ICAEW has published Technical Release 01/03AAF (Revised): The Audit Report and Auditor’s Duty of Care to Third Parties. This Technical Release provides updated guidance on the positioning of the ‘disclaimer’ paragraph that the ICAEW recommend is included in an auditor’s report to help manage the risk of liability to third parties (also referred to as ‘Bannerman Clarification Language’).
The guidance now recommends that this ‘disclaimer’ paragraph is positioned at the final section of the audit report, directly preceding the auditor’s signature. The example given in the guidance includes the paragraph under the subheading ‘Use of our report’.
A separate email alert has been sent to subscribers of relevant Mercia technical manuals regarding this guidance.