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Chapter 13 The Auditors Report
Chapter 13 The Auditors Report
[7. Emphasis of Matter Paragraphs (may also be placed after basis of opinion
if auditor finds it more appropriate)
/ Other Matter Paragraphs (may also be made part of Other reporing
responsibilities if auditor finds it more appropriate) ]
AFFIRMATIVE STATEMENT
PRESENTATION OF THE
ON AUDITOR’S
OPINION SECTION FIRST
INDEPENDENCE
IN 2013, IN 2015,
UK AUDITORS OF SIMILAR
LISTED REQUIREMENTS
COMPANIES: WERE
REQUIRED TO INTRODUCED
DISCLOSE KEY INTO THE
RISKS AND HOW ISA
ADDRESSED
In 2015 the IAASB issued the new
ISA 701, Communicating Key
Audit Matters in the Independent
Auditor’s Report. This standard
will become applicable for all
audits of financial statements
ending on or after
15 DECEMBER 2016
COMMUNICATION OF KAM :
REQUIREMENT IN AUDITS OF LISTED COMPANIES
EXPECTED TO
REVOLUTIONIZE
THE AUDITOR’S
REPORT
MATTERS THAT IN THE
AUDITOR’S JUDGMENT
WERE OF MOST
SIGNIFICANCE IN THE FROM MATTERS
CURRENT PERIOD AUDIT: DISCUSSED WITH
TCWG
WHERE AUDITORS
FOCUSED THE MOST
MATTERS MATTERS WHERE MGT’S
INVOLVING MOST DETERMINED SELECTION OF
COMMUNICATION TO BE AN
WITH TCWG IMPORTANT TO ACCOUNTING
THE USERS OF POLICY WAS
THE FS COMPLEX OR
INVOLVES
WHERE THERE ARE SUBJECTIVITY
MISSTATEMENTS MATTERS
RELATED TO THE REQUIRING AREAS WITH
MATTER THE MOST DIFFICULTY IN
AUDIT APPLYING AUDIT
EFFORT PROCEDURES OR
OBTAINING RELIABLE
AUDIT EVIDENCE
AREAS AFFECTED BY SEVERE CONTROL
DEFICIENCY
KAM INCLUDES
WHY MATTER
IS
AVOID CONSIDERED
STANDARDIZED KAM
AND OVER
TECHNICAL HOW MATTER WAS
WORDS ADDRESSED IN THE
AUDIT
REFERENCE TO
RELATED
DISCLOSURES, IF ANY
UNQUALIFIED REPORT ALSO KNOWN AS
UNMODIFIED REPORT
MODIFIED OPINIONS:
QUALIFIED
ADVERSE
AND DISCLAIMER OF OPINION
FAIRLY STATED IN ALL MATERIAL
RESPECTS
EFFECT OF A CERTAIN
MISSTATEMENT, OR
INABILITY TO GATHER
EVIDENCE , IS
MATERIAL BUT NOT
PERVASIVE
EFFECT OF MISSTATEMENT
IS BOTH MATERIAL AND
PERVASIVE
EMPHASIS OF MATTER OTHER MATTER
PARAGRAPH PARAGRAPH
THE COMBINED FS
BETWEEN PARENT COMBINED OR GROUP FS:
AND SUBSIDIARY
FS OF SEVERAL ENTITIES
WITH COMMON CONTROL
BUT NO PARENT COMPANY
COMPONENT:
COMPONENT AUDITOR
AN ENTITY OR BUSINESS
ACTIVITY FOR WHICH GROUP OR ONE WHO AUDITS THE
COMPONENT MANAGEMENT COMPONENT FOR THE
PREPARES FINANCIAL GROUP AUDIT
INFORMATION THAT SHOULD
INCLUDED IN THE GROUP FS.
COMPONENT MANAGEMENT:
ACCESS
TO
CONSIDERATION
OTHER
OF OTHER
INFO SUPPLEMENTARY
INFORMATION:
INFORMATION
NOTE MATERIAL
PRESENTED WITH
INCONSISTENCIES
FINANCIAL
AND SEE NEED FOR
STATEMENTS
AMENDMENT
THE AUDIT REPORT