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Audit & Assurance ISA 701 Key Audit Matters
- 1. Audit & Assurance ISA 701 Presented By: Sanjida Akther ID: 20132501 Session: 2019-20 Department of AIS Jatiya Kabi Kazi Nazrul Islam University
- 2. COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR’S REPORT ISA 701
- 3. Section A Scope of this ISA Section D Communicating Key Audit Matters Section B Key Audit Matter Section E Documentation 01 02 04 05 Table of Contents Section C Decision Making Framework Section F Determining Key Audit Matter 03 06
- 4. —Auditor, Cyprus “Auditors are not trying to hide anything and the fact that Key Audit Matters are now disclosed in Audit Reports makes more transparent the matters they had in mind in prior years as well”
- 5. Scope of this ISA 01 Deals with the auditor’s responsibility to communicate key audit matters in the auditor’s report. The purpose of communicating Key Audit Matter is to enhance the communicative value of the auditor’s report by providing greater transparency about the audit that was performed.
- 6. Key Audit Matter 02 In the auditor’s Professional Judgement, were of most significant in the audit of the financial statement of the current period. Key Audit Matters are selected from matters communicated with those charged with governance.
- 7. Decision Making Framework 03 Matters that are communicated with those charged with governance Matters that required significant auditor attention Matters of most significance in the audit
- 8. Determining Key Audit Matter Areas of higher assessed risk of material misstatement or significant risks, Step 1 Step 2 Step 3 Significant auditors judgement relating to areas of significant management judgement. Effect on the audit of significant events or transactions. The Auditor always consider: 04
- 9. Communicating KAM The auditor shall describe each key audit matter, using an appropriate subheading, in a separate section of the auditor’s report under the heading “Key Audit Matters” 05
- 10. Documentation Why a matter that required significant auditor attention is or is not a key audit matter? Significance If there are no key audit matter the rational, why? Rational or Not Why a matter determined to be a key audit matter is not communicated? Communication 06
- 11. Effective Date This ISA is effective for audits of financial statements for periods ending on or after December 15, 2016
- 12. Thanks! Do you have any questions?