ISA 701 (New) Communicating Key Audit Matters in the Independent Auditor’s Report (detailed)

Cairo-17/12/2016Audit | Tax | Advisory
ISA 701 (New)
Communicating Key Audit Matters in the
Independent Auditor’s Report
‫للتدقيق‬ ‫الدولي‬ ‫المعيار‬701(‫جديد‬)
‫التدقيق‬ ‫أمور‬ ‫إيصال‬‫ا‬ ‫المدقق‬ ‫تقرير‬ ‫في‬ ‫الرئيسية‬‫لمستقل‬
Dr. Daoud Y. Sobh
Consultant,
Crowe Horwath Professional Auditors
Members Crowe Horwath International
‫عمل‬ ‫ورشة‬:‫للمدقق‬ ‫الحديثة‬ ‫المهارات‬
‫العرب‬ ‫والمراجعين‬ ‫المحاسبين‬ ‫اتحاد‬
‫القاهرة‬–17/12/2016

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 Overview of the New and Revised Auditor Reporting
Standards and Related Conforming Amendments.
 ISA 701 (New) Communicating Key Audit Matters in
the Independent Auditor’s Report
Contents

Cairo-17/12/2016 3ISA 701 (New) Communicating Key Audit Matters
Overview
of the New and Revised Auditor Reporting Standards
and Related Conforming Amendments
‫عامة‬ ‫نظرة‬
‫على‬‫تقارير‬ ‫معايير‬‫المدقق‬‫ال‬‫و‬ ‫جديدة‬‫ة‬َ‫ل‬َّ‫د‬َ‫ع‬ُ‫م‬‫ال‬
‫و‬‫التعديالت‬‫المعايير‬ ‫على‬‫ذات‬‫الصلة‬

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New and Revised
Auditor Reporting Standards
Enhancing Communicative Value
‫َّله‬‫د‬َ‫ع‬ُ‫م‬‫وال‬ ‫الجديدة‬ ‫المدقق‬ ‫تقارير‬ ‫معايير‬
‫التواصل‬ ‫قيمة‬ ‫ن‬ِّ‫س‬َ‫ح‬ُ‫ت‬
ISA 701 (New) Communicating Key Audit Matters 4

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Why Change the Auditor’s Report Now?
 The Auditor’s Report is the key deliverable to communicating the
results of the audit process.
 Investors and other users of the financial statement have asking for
a more informative auditor’s report, in particular for auditors to
provide more relevant information to users.
 Research, public consultations, and stakeholder outreach, including
global roundtables, indicate that enhanced auditor’s report is critical
to influence the perceived value of the audited financial statement.

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‫المعايير‬‫الجديدة‬‫و‬‫التي‬ ‫التغييرات‬‫معايير‬ ‫على‬ ‫أدخلت‬‫التدقيق‬
The new and changes made to the auditing standards
‫إلى‬ ‫تهدف‬:
 Significantly enhance value of
independent audit,
‫تعزيز‬‫قيمة‬‫التدقيق‬‫المستقل‬‫بشكل‬‫ملحوظ‬.
 Designed to change how auditors
communicate their work in their
reports.
‫تغيير‬‫كيفية‬‫إيصال‬‫المدققون‬‫عملهم‬‫في‬
‫تقاريره‬‫م‬.
 Increased auditors’ focus on going-
concern matters and added more
transparency in the auditor’s report to
address his work performed.
‫زيادة‬‫تركيز‬‫المدقق‬‫على‬‫أمور‬‫استمرارية‬
‫المنشأة‬‫وإضافة‬‫المزيد‬‫من‬‫الشفافية‬‫في‬‫ت‬‫قرير‬
‫المدقق‬‫لمعالجة‬‫التعبير‬‫عن‬‫عمله‬‫الذي‬‫قام‬
‫بتنفيذه‬.
 Auditors of listed entities will be
required to communicate “key audit
matters - KAM” in the auditor’s reports.
‫مطلوب‬‫من‬‫مدققي‬‫المنشاءات‬‫المدرجة‬‫توصي‬‫ل‬
"‫أمور‬‫التدقيق‬‫الرئيسية‬-KAM"‫في‬‫تقارير‬
‫المدقق‬‫في‬‫قسم‬‫مستقل‬.
 The new and revised Auditor Reporting
Standards PUT the foundation for the
future of global auditor reporting and
improved auditor communications
‫ت‬‫ضع‬‫ال‬‫معايير‬‫ال‬‫جديدة‬‫و‬‫ال‬‫معدلة‬‫لتقارير‬‫ا‬‫لمدقق‬
‫األساس‬‫لمستقبل‬‫عالمية‬‫وشمولية‬‫تقارير‬
‫المدقق‬،‫وتحسين‬‫اتصاالت‬‫المدقق‬

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What are the Intended Benefits? ‫ما‬‫المرجوة؟‬ ‫الفوائد‬ ‫هي‬
 Enhanced communication between
auditors and users, investors, as well as
Management/ TCWG.
‫بين‬ ‫التواصل‬ ‫تعزيز‬‫المدققين‬‫والمستخدمي‬‫ن‬
‫وكذلك‬ ،‫والمستثمرين‬‫اإل‬‫دارة‬/TCWG.
 Increased user confidence in audit
reports and financial statements.
‫تقارير‬ ‫في‬ ‫المستخدم‬ ‫ثقة‬ ‫زيادة‬‫التدقيق‬‫وال‬‫بيانات‬
‫المالية‬.
 Increased transparency, audit quality,
and enhanced information value.
‫المعلو‬ ‫وقيمة‬ ،‫التدقيق‬ ‫وجودة‬ ‫الشفافية‬ ‫زيادة‬‫مات‬
‫المحسنة‬.
 Increased attention by management
and preparers of financial statements
to disclosures that are referenced in the
auditor's report.
‫البيانا‬ ‫ومعدي‬ ‫اإلدارة‬ ‫قبل‬ ‫من‬ ‫المتزايد‬ ‫االهتمام‬‫ت‬
‫المالية‬‫ب‬‫ف‬ ‫إليها‬ ‫الرجوع‬ ‫يتم‬ ‫التي‬ ‫اإلفصاحات‬‫تقرير‬ ‫ي‬
‫المدقق‬.
 To include in the Audit Report and
focus on matters that could result in an
increase in professional skepticism.
‫أن‬‫ي‬‫ي‬‫تقرير‬ ‫في‬ ‫درج‬‫التدقيق‬‫و‬‫يتم‬ ‫إن‬‫الت‬‫على‬ ‫ركيز‬
‫المه‬ ‫الشك‬ ‫زيادة‬ ‫إلى‬ ‫تؤدي‬ ‫أن‬ ‫يمكن‬ ‫التي‬ ‫األمور‬‫نى‬.
 Enhanced financial reporting in the
public interest.
‫تعزيز‬‫العامة‬ ‫للمصلحة‬ ‫المالية‬ ‫التقارير‬.

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IAASB issues final standards
to improve auditor's report
‫والتأكيد‬ ‫التدقيق‬ ‫معايير‬ ‫مجلس‬ ‫بالمختصر‬
‫يصدر‬‫تقرير‬ ‫لتحسين‬ ‫النهائية‬ ‫المعايير‬‫ا‬‫لمدقق‬
In brief:
IAASB: International Auditing and Assurance Standards Board

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The New and Revised Auditor Reporting Standards = (7)
and related conforming amendments = (8)
What's Changing? What's New?
These 7 standards and 8 related conforming amendments are:
ISA #
1 700 (Revised) Forming an Opinion and Reporting on Financial Statements
2 701 (New) Communicating Key Audit Matters in the Independent
Auditor’s Report
3 705 (Revised) Modifications to the Opinion in the Independent Auditor’s Report
4 706 (Revised) Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
5 570 (Revised) Going Concern - GC
6 260 (Revised) Communication with Those Charged with Governance - TCWG
7
720 (Revised) The Auditor’s Responsibilities Relating to Other Information
in Documents Containing Audited Financial Statements

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Conforming Amendments to ISAs: 210, 220, 230, 510, 540, 580, 600, and 710.
10ISA 701 (New) Communicating Key Audit Matters
ISA #
1 210 Agreeing the Terms of Audit Engagements
2 220 Quality Control for an Audit of Financial Statements
3 230 Audit Documentation
4 510 Initial Audit Engagements—Opening Balances
5 540 Auditing Accounting Estimates, Including Fair Value Accounting
Estimates, and Related Disclosures
6 580 Written Representations
7 600 Special Considerations—Audits of Group Financial Statements
(Including the Work of Component Auditors)
8 710 Comparative Information—Corresponding Figures and
Comparative Financial Statements
The New and Revised Auditor Reporting Standards
and related conforming amendments

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‫حدث؟‬ ‫ماذا‬
Issue Date: January 15, 2015
The International Auditing and Assurance Standards
Board - IAASB, issued new and revised auditor reporting
standards and related conforming amendments
intended to provide greater transparency about the audit
that was performed.
What happened?
Effective Date: December 15, 2016
The new and revised Auditor Reporting Standards
are effective for audits of financial statements
for periods ending on or after December 15, 2016.

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What has changed
12
Overarching Standard for Auditor Reporting – ISA 700 (Revised)
Conforming amendments to
ISA 210, 220, 230, 510, 540, 580, 600 and 710
ISA 701 (New) Communicating Key Audit Matters

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Key Features of the New Auditor’s Report
13
Auditor’s
Report
What is
New
- Expand Responsibilities of Management including TCWG
- Expand Responsibilities of Auditor with provision that
certain components are in Appendix or Website
Other Information – Enhanced work effort
and new section (reporting under ISA 720-revised)
Going Concern – Additional Focus
Include a separate section in the auditor’s report
only when a Material Uncertainty exists
- Key Audit Matters
- Name of Engagement Partner
Audit Opinion – Required to be presented first
Followed by Basis of Opinion (regardless of whether a modified
opinion is expressed on the financial statements).
Explicit statement In the “Basis for Opinion” section about
independence & ethical requirements, with disclosure of
the origin of those requirements.
Required for Listed
Entities

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New Structure
1. Opinion
2. Basis for ?? Opinion, (Independence,
Ethical Responsibilities)
3. Material Uncertainty Related to GC (If
Applicable)
4. Emphasis of Matter (If Applicable)
5. Key Audit Matters (Listed Companies)
6. Other Matters (IF Any)
7. Other Information- reporting in
accordance with ISA 720 (If Applicable)*
8. Responsibilities of Mgmnt and TCWG
9. Auditor’s Responsibilities (Detailed
within or Appendix or on Website)
10. Report on Other Legal and Regulatory
Requirements (If Applicable)
11. Eng. Partner Name (Listed Entities)
1. Introduction including Identification
of Financial Statements.
2. Management Responsibility for the FS
3. Auditor’s Responsibility
4. Basis For ?? Opinion (modified)
5. Opinion
6. Emphasis of Matter (If Applicable)
7. Other Matters (If Applicable)
8. Report on other legal and Regulatory
(If applicable)
New Report Structure Old Report Structure
Opinion

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‫للتدقيق‬ ‫الدولي‬ ‫المعيار‬ISA 701
(‫جديد‬New)
Communicating Key Audit Matters in the
‫التدقيق‬ ‫أمور‬ ‫إيصال‬‫ا‬ ‫المدقق‬ ‫تقرير‬ ‫في‬ ‫الرئيسية‬‫لمستقل‬
18 Para. & 64A (Applications)

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CONTENTS 0f ISA 570
Subject Para Appl. Para
Introduction ‫تقديم‬
Scope of this ISA ‫المعيار‬ ‫هذا‬ ‫نطاق‬ 1 - 5 A1 – A8
Effective Date ‫النفاذ‬ ‫تاريخ‬ 6
Objectives ‫االهداف‬ 7
Definition ‫تعريفات‬ 8
Requirements ‫المتطلبات‬
Determining Key Audit Matters(KAM) ‫تحديد‬‫الرئيس‬ ‫التدقيق‬ ‫أمور‬‫ية‬ 9, 10 A9 – A30
Communicating Key Audit Matters ‫الرئيس‬ ‫أمورالتدقيق‬ ‫إيصال‬‫ية‬ 11 - 16 A31, A59
Communication with Those Charged
with Governance
‫المكلفي‬ ‫أولئك‬ ‫مع‬ ‫التواصل‬‫ن‬
‫بالحوكمة‬
17 A60 - A63
Documentation ‫التوثيق‬ 18 A64

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‫مهنية‬ ‫مصطلحات‬
key Audit Matters (KAM( ‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬‫األ‬ ‫التدقيق‬ ‫أمور‬ ،‫ساسية‬
Communicating, Communication, To
Communicate
‫إيصال‬،‫إبالغ‬ ،‫توصيل‬ ،‫تواصل‬ ،...
Matters ‫أمور‬‫قضايا‬ ،‫مسائل‬ ،
Financial Statements ‫المالية‬ ‫البيانات‬‫المالية‬ ‫القوائم‬ ،
Auditor
‫مدقق‬‫مراقبة‬ ‫مفوض‬ ،‫حسابات‬ ‫مراقب‬ ،‫مراجع‬ ،،
،‫محاسبة‬ ‫خبير‬.....
Those Charged with Governance
(TCWG)
‫بالحوكمة‬ ‫المكلفون‬ ‫أولئك‬

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‫نطاق‬‫هذا‬‫المعيار‬701 (New)Scope of ISA
Para 1 - 5
‫يتناول‬‫هذا‬‫المعيار‬‫مسؤولية‬‫المدقق‬‫في‬‫إيصال‬‫أ‬‫مور‬‫التدقيق‬‫الرئيسية‬‫في‬‫تقر‬‫ير‬‫المدقق‬.
‫معالجة‬‫كم‬ُ‫ح‬‫المدقق‬‫في‬‫األمور‬‫التي‬‫يجب‬‫إيصالها‬‫في‬‫تقريره‬‫من‬‫حيث‬‫الشكل‬‫وا‬‫لمضمون‬.
‫إن‬‫الغرض‬‫من‬‫إيصال‬‫أمور‬‫التدقيق‬‫الرئيسية‬‫هو‬‫تعزيز‬‫التواصل‬‫لتقرير‬‫المدقق‬‫عن‬‫طريق‬
‫توفير‬‫قدر‬‫أكبر‬‫من‬‫الشفافية‬‫بشأن‬‫عملية‬‫التدقيق‬‫التي‬‫تم‬‫تنفيذها‬.
‫يوفر‬‫إيصال‬‫أمور‬‫التدقيق‬‫الرئيسية‬‫في‬‫تقرير‬‫ا‬‫لمدقق‬
‫معلومات‬‫إضافية‬‫لمستخدمي‬‫البيانات‬‫المالية‬‫لمساع‬‫دتهم‬
‫في‬‫فهم‬‫هذه‬‫األمور‬‫والتي‬‫هي‬‫حسب‬‫كم‬ُ‫ح‬‫ال‬‫المهني‬
‫للمدقق‬.‫تعتبر‬‫ذات‬‫أهمية‬‫كبيرة‬‫في‬‫تدقيق‬‫البيان‬‫ات‬‫المالية‬.

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‫نطاق‬‫هذا‬‫المعيار‬701 (New)Scope of ISA
‫إن‬‫إيصال‬‫أمور‬(‫مسائل‬)‫التدقيق‬‫الرئيسية‬‫ضمن‬‫تقرير‬‫المدقق‬‫المستقل‬‫هو‬‫ج‬‫زء‬‫من‬‫تكوين‬
‫رأي‬‫المدقق‬‫حول‬‫البيانات‬‫المالية‬‫ككل‬،
‫ال‬‫يعتبر‬‫إيصال‬(،‫توصيل‬‫إبالغ‬)‫أمور‬‫التدقيق‬‫الرئيسية‬‫في‬‫تقرير‬‫المدقق‬‫ب‬‫ا‬‫ال‬‫دي‬‫عن‬:
•‫اإلفصاحات‬‫في‬‫البيانات‬،‫المالية‬‫المطلوبة‬‫من‬‫اإلدارة‬‫بهدف‬‫تحقيق‬‫العرض‬‫ال‬‫عادل‬
‫حسب‬‫المعايير‬‫الدولية‬‫للتقارير‬‫المالية‬IFES.
•‫الرأي‬‫َّل‬‫د‬‫ع‬ُ‫م‬‫ال‬‫وفق‬ISA 705،(‫التعديالت‬‫على‬‫رأي‬‫المدقق‬‫المستقل‬).
•‫إصدار‬‫التقرير‬‫وفق‬‫ا‬‫للمعيار‬ISA 570،(‫االستمرارية‬)‫عند‬‫وجود‬‫شك‬‫هام‬(‫جوهري‬)
‫متعلق‬‫باألحداث‬‫اأو‬‫الظروف‬‫التي‬‫قد‬‫تدل‬‫على‬‫وجود‬‫شك‬‫هام‬‫في‬‫قدرة‬‫المنشأة‬‫ع‬‫لى‬
‫اإلستمرار‬‫وفقا‬‫لمبدأ‬‫االستمرارية‬‫المحاسبي‬.
•‫رأي‬‫المدقق‬‫المستقل‬‫في‬‫األمور‬‫الفردية‬‫األخرى‬.A separate opinion on
individual matters.
Para 1 – 5

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Scope of ISA 701 (New) ‫هذا‬ ‫نطاق‬‫المعيار‬
‫يطبق‬‫هذا‬‫المعيار‬:
•‫على‬‫مهام‬‫التدقيق‬‫على‬‫مجموعة‬‫كاملة‬‫من‬‫البيانات‬‫المالية‬‫ذات‬‫الغرض‬،‫العام‬‫و‬
•‫على‬‫المنشآت‬‫درجة‬ُ‫م‬‫ال‬،
•‫على‬‫الظروف‬‫التي‬‫يقرر‬‫فيها‬‫المدقق‬‫إيصال‬‫أمور‬‫التدقيق‬‫الرئيسية‬‫في‬‫تق‬‫رير‬،‫المدقق‬
•‫حين‬‫يجب‬‫على‬‫المدقق‬‫وفق‬‫القوانين‬‫واألنظمة‬‫إيصال‬‫أمور‬‫التدقيق‬‫الرئيسي‬‫ة‬‫في‬‫تقرير‬
،‫المدقق‬
‫يحظر‬‫المعيار‬ISA 705،‫على‬‫المدقق‬‫إيصال‬‫أمور‬‫التدقيق‬
‫الرئيسية‬‫عندما‬‫يحجب‬‫المدقق‬‫رأيه‬‫حول‬‫البيانات‬‫الما‬‫لية‬
(‫االمتناع‬‫عن‬‫إبداء‬‫الرأي‬).
Para 1 – 5

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General concepts of ISA 701 (New)
‫عامة‬ ‫مفاهيم‬
In most cases, KAM relate to
significant complex matters
disclosed in the financial
statements, e.g.,
،‫الحاالت‬ ‫معظم‬ ‫في‬‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬‫ت‬‫تعلق‬
‫معقدة‬ ‫بأمور‬‫تم‬ ‫هامة‬‫البيا‬ ‫في‬ ‫عنها‬ ‫اإلفصاح‬‫نات‬
،‫المثال‬ ‫سبيل‬ ‫على‬ ،‫المالية‬
valuation of goodwill and other long-
term assets,
‫تقييم‬‫الشهرة‬‫األج‬ ‫طويلة‬ ‫األصول‬ ‫من‬ ‫وغيرها‬،‫ل‬
valuation of financial instruments, ،‫المالية‬ ‫األدوات‬ ‫تقييم‬
difficult or unique aspects of revenue
recognition, or
‫أو‬ ‫الصعبة‬ ‫الجوانب‬‫ال‬‫االعتراف‬ ‫من‬ ‫فريدة‬
‫ب‬‫أو‬ ،‫اإليرادات‬
accounting for significant
acquisitions.
‫عن‬ ‫المحاسبة‬‫االستحواذ‬‫الهامة‬ ‫ات‬.

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-‫غش‬‫في‬‫اإليرادات‬ ‫تحقيق‬.
General concepts of ISA 701 (New) ‫عامة‬ ‫مفاهيم‬
 The description of a KAM should
be clear, concise, understandable
and entity-specific.
‫يجب‬‫الرئيس‬ ‫التدقيق‬ ‫أمور‬ ‫وصف‬ ‫يكون‬ ‫أن‬‫ية‬
‫بصورة‬‫ومفهومة‬ ‫وموجزة‬ ‫واضحة‬‫و‬‫محدد‬‫ة‬
،‫التدقيق‬ ‫موضوع‬ ‫للمنشأة‬
 Recently, the UK Financial
Reporting Council (FRC)
conducted a post-implementation
review. In a survey of more 150
auditor’s reports, it was found
that the top five KAMs most
reported in the UK were:
1. Impairment of assets
2. Tax
3. Goodwill Impairment
4. Management override of
controls, and
5. Fraud in revenue recognition.
‫التقارير‬ ‫مجلس‬ ‫أجرى‬ ،‫األخيرة‬ ‫اآلونة‬ ‫في‬
‫المتحدة‬ ‫المملكة‬ ‫في‬ ‫المالية‬(FRC)‫استعراض‬
‫التنفيذ‬ ‫بعد‬ ‫ما‬.‫استطالع‬ ‫وفي‬‫تطب‬ ‫حول‬‫أمور‬ ‫يق‬
،‫الرئيسية‬ ‫التدقيق‬‫من‬ ‫أكثر‬ ‫شمل‬ ‫الذي‬150
‫تقرير‬‫للمدققين‬‫أن‬ ‫تبين‬ ،‫التدقيق‬ ‫أمور‬‫الرئيسية‬
‫ذكرا‬ ‫األكثر‬‫في‬‫في‬ ‫التدقيق‬ ‫تقارير‬‫المم‬‫لكة‬
‫المتحدة‬‫هي‬‫خمس‬‫و‬‫كانت‬‫التالية‬ ‫األمور‬ ‫حول‬:
.1‫الموجودات‬ ‫قيمة‬ ‫انخفاض‬(‫األصول‬)
.2،‫الضرائب‬
.3‫انخفاض‬‫الشهرة‬،
.4‫تجاوز‬‫اإل‬‫دارة‬‫الداخلي‬ ‫للضبط‬(‫الرقا‬‫بة‬
‫الداخلية‬)‫و‬
.5‫غش‬‫اإليرادات‬ ‫تحقيق‬ ‫في‬.

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‫النفاذ‬ ‫تاريخ‬
This ISA is effective for audits of financial statements
for periods ending on or after December 15, 2016.
‫المعيار‬ ‫هذا‬ ‫تطبيق‬‫المفعول‬ ‫نافذ‬‫ل‬‫المالية‬ ‫البيانات‬ ‫تدقيق‬
‫المنتهية‬ ‫للفترات‬‫في‬‫أو‬‫بعد‬‫تاريخ‬15/12/2016
Para 6
Effective Date

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‫ا‬‫ال‬‫ه‬‫ـــــــ‬‫داف‬
‫أهداف‬‫هي‬ ‫المدقق‬:
‫تحديد‬‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬KAM‫و‬ ،
‫تكوين‬،‫المالية‬ ‫البيانات‬ ‫حول‬ ‫رأي‬
‫ايصال‬‫بوصفها‬ ‫األمور‬ ‫هذه‬(‫توضيحها‬)‫تقرير‬ ‫في‬‫المستقل‬ ‫المدقق‬.
The objectives of the auditor are to determine key audit matters (KAM)
and, having formed an opinion on the financial statements,
communicate those matters by describing them in the auditor’s report.
Para 7
Objectives

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‫تعريفات‬
Key Audit Matters (KAM( ‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬
Those matters that, in the
auditor’s professional judgment,
were of most significance in the
audit of the financial statements
of the current period.
Key Audit Matters are selected
from matters communicated with
those charged with governance
(TCWG).
‫هي‬‫تلك‬،‫األمور‬‫والتي‬‫حسب‬‫الحكم‬
‫المهني‬‫للمدقق‬‫هي‬‫األكثر‬‫أهمية‬‫في‬‫تدق‬‫يق‬
‫البيانات‬‫المالية‬‫في‬‫الفترة‬‫الحالية‬.
‫يتم‬‫اختيار‬‫أمور‬‫التدقيق‬‫الرئيسية‬‫م‬‫ن‬
‫األمور‬‫التي‬‫تمت‬‫مناقشتها‬‫وايصالها‬‫إل‬‫ى‬
‫أولئك‬‫المكلفين‬‫بالحوكمة‬‫في‬‫الشرك‬‫ة‬.
Para 8
Definition

Cairo-17/12/2016Cairo-17/12/2016 ISA 701 (New) Communicating Key Audit Matters
• Those matters that, in the auditor’s professional judgment, were of most
significance in the audit of the financial statements of the current period.
KAM are selected from matters communicated with those charged with
governance.
A. How to DETERMINE these
matters ?
B. How to COMMUNICATE these
matters?
C. How to DOCUMENT these
matters?
Matters
communicated
with TCWG
Matters requiring
significant auditor
attention
KAM:
Matters of most
significance in the
audit
Key Audit Matters (KAM) – Defined
26

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How to Communicate KAM ?
2) OUR ASSESSMENT OF RISKS OF MATERIAL MISSTATEMENT
When planning our audit, we made an assessment of the relative significance of the key risks of
material misstatement to the Group financial statements initially without taking account of the
effectiveness of controls implemented by the Group. This initial assessment is shown below in
the output from our Dynamic Audit planning tool. As there has been no significant change in the
Group’s operations or in our assessment of materiality these key risks are the same as in the
prior year, though there have been some changes in the significance to our audit of some of the
risks.
Of the 18 key risks identified, we describe below (i) the 8 risks of material misstatement that
had the greatest effect on our audit (those in dark blue on the risk map – the descriptions of
risks include
an explanation for the changes in significance of these risks from last year), (ii) our key audit
procedures to address those risks and (iii) our findings from those procedures in order that the
Company’s members as a body may better understand the process by which we arrived at our
audit opinion. Our findings are the result of procedures undertaken in the context of and solely
for the purpose of our statutory audit opinion on the financial statements as a whole and
consequently are incidental to that opinion, and we do not express discrete opinions on separate
elements of the financial statements.
► Examples
INDEPENDENT AUDITOR’S REPORT
to the members of Rolls-Royce Holdings
4/6
‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬ ‫ايصال‬ ‫كيفية‬

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‫المتطلبات‬
‫هي‬ ‫عناوين‬ ‫ثالثة‬ ‫المعيار‬ ‫هذا‬ ‫متطلبات‬:
‫تحديد‬،‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬
How to Determine KAM?
‫إ‬‫يصال‬،‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬
How to Communicate KAM?
‫التواصل‬‫بالحوكمة‬ ‫المكلفين‬ ‫أولئك‬ ‫مع‬،
How to Communicate with TCWG?
Para 9, 10
Para 11 - 16
Para 17
Requirements

1- Opinion
We have audited the financial statements of ABC Company (the
Company), which comprise the statement of financial position as at
December 31, 20X1, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the
year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements present
fairly, in all material respects, the financial position of the Company
as at December 31, 20X1, and (of) its financial performance and its
cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs).
2- Basis for Opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial
statements in [jurisdiction], and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
4- Material Uncertainty Related to Going Concern
4- Responsibilities of Management and TCWG
5- Auditor’s Responsibilities for the Audit of the F/S
6- Report on Other Legal and Regulatory Requirements
[Name of the engagement partner]
[Signature of the Auditor]
[Auditor’s Address ]
[Date]
INDEPENDENT AUDITOR’S REPORT (sample)
To the Shareholders of ABC Company [or Other Appropriate Addressee]
Report on the Audit of the Financial Statements
29

The auditor shall determine, from the matters
communicated with those charged with
governance, those matters that required
significant auditor attention in performing
the audit. In making this determination, the
auditor shall take into account the following:
‫يجب‬‫المدقق‬ ‫على‬‫تحديد‬‫التوا‬ ‫تم‬ ‫التي‬ ‫األمور‬ ‫من‬ ‫أي‬‫صل‬
،‫بالحوكمة‬ ‫المكلفين‬ ‫أولئك‬ ‫مع‬ ‫حولها‬‫هي‬‫تدقيق‬ ‫أمور‬
‫رئيسية‬،
‫تتطلب‬،‫هامة‬ ‫أمور‬ ‫أنها‬ ‫اعتبار‬ ‫المدقق‬ ‫من‬ ‫األمور‬ ‫هذه‬
‫و‬‫عل‬‫يه‬‫يلي‬ ‫ما‬ ‫باالعتبار‬ ‫يأخذ‬ ‫أن‬:
 AREAS of higher assessed risk of material
misstatement, or significant risks identified
in accordance with ISA 315 .
‫مجاالت‬‫جوهرية‬ ‫اخطاء‬ ‫او‬ ‫مخاطر‬ ‫ذات‬ ‫أنها‬ ‫تقدير‬ ‫تم‬
‫للمعيار‬ ‫وفقا‬ ‫هامة‬ ‫مخاطر‬ ‫او‬ ،‫مرتفعة‬ISA 315.
 Significant auditor judgments relating to
areas that involved significant management
judgment, including accounting estimates
that have been identified as having high
estimation uncertainty.
‫الهامة‬ ‫المدقق‬ ‫تقديرات‬‫بنو‬ ‫ببعض‬ ‫تتعلق‬ ‫التي‬‫د‬
‫الج‬ ‫اإلدارة‬ ‫بتقديرات‬ ‫المتعلقة‬ ‫المالية‬ ‫البيانات‬‫بما‬ ‫وهرية‬
‫المؤكدة‬ ‫غير‬ ‫المحاسبية‬ ‫التقديرات‬ ‫فيها‬.
 The effect on the audit of significant
events or transactions that occurred
during the period.
‫ا‬‫تدقيق‬ ‫على‬ ‫لتأثير‬‫الت‬ ‫الهامة‬ ‫المعامالت‬ ‫أو‬ ‫األحداث‬‫ي‬
‫الفترة‬ ‫خالل‬ ‫وقعت‬.
How to Determine KAM ? ‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬ ‫تحديد‬ ‫كيفية‬
1/5
‫تتطلب‬ ‫أمور‬‫اهتمام‬‫كبيرمن‬‫المدقق‬Matters requiring significant auditor’s attention
Para 9

AREAS of higher assessed risk of material
misstatement, or significant risks identified in
accordance with ISA 315 (Para. 9a, A19 – A22)
-‫مجاالت‬‫تقديرها‬ ‫تم‬‫جوهرية‬ ‫اخطاء‬ ‫او‬ ‫مخاطر‬ ‫ذات‬
‫مرتفعة‬،‫للمعيار‬ ‫وفقا‬ ‫هامة‬ ‫مخاطر‬ ‫او‬ISA 315
 Recognizes the risk-based approach of the
audit and communicating significant risks
to TCWG (A12)
‫اإلقرار‬‫أساس‬ ‫على‬ ‫التدقيق‬ ‫بمنهجية‬‫المخاطر‬،
‫المكلفين‬ ‫اولئك‬ ‫مع‬ ‫الهامة‬ ‫المخاطر‬ ‫حول‬ ‫والتواصل‬
‫بالحوكمة‬
 Matters that pose challenges in obtaining
sufficient appropriate audit evidence ( A13)
‫ي‬ ‫ما‬ ‫على‬ ‫الحصول‬ ‫في‬ ‫تحديات‬ ‫تشكل‬ ‫التي‬ ‫األمور‬‫كفي‬
‫المالئمة‬ ‫التدقيق‬ ‫أدلة‬ ‫من‬
 Can relate to complex areas and significant
management judgment (extensive hours,
senior involvement, experts, etc.) (A14)
‫المعقدة‬ ‫بالمجاالت‬ ‫تتصل‬ ‫أن‬ ‫يمكن‬،‫ال‬ ‫اإلدارة‬ ‫وحكم‬‫هام‬
(‫في‬ ‫نوسع‬‫ساعات‬‫العمل‬‫إشراك‬ ،‫رئيسيي‬ ‫مدققين‬،‫ن‬
‫بخبراء‬ ‫االستعانة‬‫الخ‬ ،)
 Can involve specific communications with
TCWG required by ISAs such as: (A15)
‫على‬ ‫تنطوي‬ ‫أن‬ ‫يمكن‬‫تواصل‬‫المكل‬ ‫اولئك‬ ‫مع‬ ‫محدد‬‫فين‬
‫بالحوكمة‬‫ل‬ ‫الدولية‬ ‫المعايير‬ ‫متطلبات‬ ‫وفق‬‫لتدق‬‫يق‬‫مثل‬:
• (ISA 260) – difficulties encountered during
the audit (related parties, group audit
procedures, etc…)
• ISA 220 – Complex matters requiring
consultation
•ISA 260‫خالل‬ ‫المدقق‬ ‫واجهها‬ ‫التي‬ ‫الصعوبات‬
‫التدقيق‬(‫تدقيق‬ ‫إجراءات‬ ،‫العالقة‬ ‫ذات‬ ‫األطراف‬
‫ال‬،‫مجموعة‬‫الخ‬)...
•ISA 220‫التشاور‬ ‫تتطلب‬ ‫التي‬ ‫المعقدة‬ ‫األمور‬
1/5Para 9

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‫تقديرات‬‫المدقق‬‫الهامة‬‫حول‬‫بعض‬‫بنود‬‫البيانات‬‫المالية‬‫المتعلقة‬‫بتقديرات‬‫اإلدارة‬‫ا‬‫لجوهرية‬
‫بما‬‫فيها‬‫التقديرات‬‫المحاسبية‬‫غير‬‫المؤكدة‬
‫يتطلب‬‫المعيار‬ISA 260‫التواصل‬‫مع‬‫أولئك‬‫المكلفين‬‫بالحوكمة‬‫حول‬‫الجوانب‬‫النوعية‬
Qualitative aspects‫الهامة‬‫للممارسات‬‫المحاسبية‬،‫المستخدمة‬‫بما‬‫فيها‬‫حكم‬،‫اإلدارة‬
‫والسياسات‬‫والتقديرات‬‫المحاسبية‬‫واإلفصاحات‬‫المتعلقة‬‫بها‬.
‫ولذلك‬‫تتطلب‬‫انتباه‬‫هام‬‫من‬‫المدقق‬‫الذي‬‫يعتبرها‬‫مخاطر‬‫جوهرية‬.
‫ظهر‬‫ي‬‫مستخدمو‬‫البيانات‬‫المالية‬‫اهتمام‬‫في‬‫التقديرات‬‫المحاسبية‬‫و‬‫التي‬‫تتضمن‬‫فرض‬‫يات‬‫غير‬،‫مؤكده‬
‫حسب‬‫المعيار‬ISA 540(‫تدقيق‬‫التقديرات‬‫المحاسبية‬...)
‫مثل‬‫هذه‬‫التقديرات‬‫تعتمد‬‫بشكل‬‫كبير‬‫على‬‫حكم‬‫االدارة‬‫في‬‫أغلب‬‫االحيان‬‫وأحيانا‬‫تكون‬‫ه‬‫ذه‬‫التقديرات‬
‫هي‬‫االكثر‬‫تعقيدا‬‫في‬‫البيانات‬‫المالية‬‫وقد‬‫تتطلب‬‫رأي‬‫خبراء‬‫يتم‬‫تعيينهم‬‫من‬‫قبل‬‫اال‬‫دارة‬‫والمدقق‬.
‫يؤكد‬‫مستخدمو‬‫البيانات‬‫المالية‬‫بأن‬‫السياسات‬‫المحاسبية‬‫التي‬‫تعتبر‬‫هامة‬‫من‬‫وجهة‬‫نظر‬‫هم‬‫هي‬
‫المتعلقة‬‫بمعرفتهم‬‫حول‬‫البيانات‬‫المالية‬‫حول‬‫المنشأة‬‫وخصوصا‬‫اذا‬‫كانت‬‫ممارسة‬‫المنشأة‬‫ا‬‫لمالية‬‫غير‬
‫اعتيادية‬‫بالمقارنة‬‫مع‬‫الممارسات‬‫المحاسبية‬‫المتبعة‬‫في‬‫المنشآت‬‫العاملة‬‫ضمن‬‫نفس‬‫الق‬‫طاع‬
‫االقتصادي‬‫للمنشأة‬.
Para 9
2/5

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How to Determine KAM ?
33
The effect on the audit of significant
events or transactions that occurred
during the period (Para. 9, A25 , A26)
‫الهامة‬ ‫المعامالت‬ ‫أو‬ ‫األحداث‬ ‫تدقيق‬ ‫على‬ ‫التأثير‬
‫حدثت‬ ‫التي‬‫الفترة‬ ‫خالل‬.
 Transactions having significant effect
on the financial statements:
• with related parties
• Outside the normal course of
business
• Unusual transactions
‫معامالت‬‫لها‬‫تأثير‬‫هام‬‫على‬‫البيانات‬‫المالي‬‫ة‬:
•،‫عالقة‬ ‫ذات‬ ‫أطراف‬ ‫مع‬ ‫هامة‬ ‫معامالت‬
•‫االعتيادية‬ ‫األعمال‬ ‫سياق‬ ‫خارج‬ ‫معامالت‬
•‫عادية‬ ‫غير‬ ‫معامالت‬
 Significant economic, accounting,
regulatory, industry, or other
developments that affected
management’s assumptions or
judgments may affect the auditor’s
overall approach and result in a
matter requiring significant auditor
attention.
‫إن‬‫التطورات‬‫التي‬‫تؤثر‬‫على‬‫فرضيات‬‫أ‬‫و‬
‫كم‬‫ح‬‫االدارة‬‫مثل‬‫التطورات‬،‫االقتصادية‬
،‫المحاسبية‬‫التشريعية‬‫والقطاعية‬‫قد‬‫تؤ‬‫ثر‬‫ايضا‬
‫على‬‫خطة‬(‫منهجية‬)‫المدقق‬‫للتدقيق‬‫وقد‬‫ت‬‫ظهر‬
‫امور‬‫تسترعي‬‫انتباه‬‫أكبر‬‫من‬‫المدقق‬.
‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬ ‫تحديد‬ ‫كيفية‬
3/5

Matters requiring significant auditor’s attention
34
‫كل‬ ‫وصف‬‫امر‬‫التدقيق‬ ‫أمور‬ ‫من‬
‫في‬ ‫الرئيسية‬‫تقرير‬‫لتش‬ ‫المدقق‬‫مل‬:
‫لماذا‬‫اعتبر‬‫األمر‬‫احد‬‫األمور‬
‫األكثر‬‫أهمية‬‫في‬‫التدقيق؟‬
‫تم‬ ‫كيف‬‫تناول‬(‫معالجة‬)‫هذ‬‫ا‬
‫األمر‬‫في‬‫التدقيق؟‬
‫ذات‬ ‫اإلفصاح‬ ‫إلى‬ ‫إشارة‬‫العال‬‫قة‬
‫إلى‬ ‫االنتباه‬ ‫يجب‬ ،‫دائما‬:
‫تقييم‬‫أعلى‬،‫للمخاطر‬‫ووجود‬
‫مخاطر‬‫كبيرة‬
‫مجاالت‬‫حكم‬‫اإل‬‫دارة‬،‫الهامة‬
‫وعدم‬‫التأكد‬‫من‬‫التقديرات‬
‫المعامالت‬‫أو‬‫األحداث‬‫الهامة‬
‫تم‬ ‫أمور‬‫المكلفين‬ ‫اولئك‬ ‫الى‬ ‫ايصالها‬‫بالحوك‬‫مة‬
Matters communicated with TCWG
‫المدقق‬ ‫من‬ ‫كبير‬ ‫اهتمام‬ ‫تتطلب‬ ‫أمور‬
Matters requiring significant auditor
attention
KAM
‫أهمية‬ ‫األكثر‬ ‫األمور‬‫عملية‬ ‫في‬‫التدقيق‬
Matters of most significance
in the audit
4/5

►‫المهني‬ ‫الحكم‬ ‫تطبيق‬APPLY PROFESSIONAL JUDGEMENT
Considerations to determine matters of
MOST SIGNIFICANCE
‫أهمية‬ ‫األكثر‬ ‫األمور‬ ‫لتحديد‬ ‫إعتبارات‬
 The importance and materiality of the matter
to intended users’ understanding of the
financial statements as a whole
‫أهمية‬‫وجوهرية‬‫األمر‬(‫المسألة‬)‫بالنسبة‬‫إلى‬‫فه‬‫م‬
‫مستخدمي‬‫البيانات‬‫المالية‬‫ككل‬.
 The nature of the underlying accounting
policy relating to the matter or the complexity
or subjectivity involved in management’s
selection of an appropriate policy compared
to other entities within its industry.
‫طبيعة‬‫السياسات‬‫المحاسبية‬‫المتعلقة‬‫باألمر‬‫أو‬
‫التعقيد‬‫أو‬‫الموضوعية‬‫ومدى‬‫صعوبة‬‫اختياراإل‬‫دارة‬
‫للسياسة‬‫المحاسبية‬‫المالئمة‬‫بالمقارنة‬‫مع‬‫الم‬‫نشاءات‬
‫األخرى‬‫في‬‫نفس‬‫القطاع‬.
 The nature and extent of audit effort needed
to address the matter, (specialized skills,
consultations)
‫طبيعة‬‫وحجم‬‫جهد‬‫التدقيق‬‫المبذول‬‫حول‬،‫األمر‬
(‫مهارات‬،‫متخصصة‬‫استشارات‬)
 The nature and severity of difficulties in
applying audit procedures, evaluating the
results of those procedures, and obtaining
relevant and reliable evidence on which to
base the auditor’s opinion, in particular as the
auditor’s judgments become more subjective.
‫طبيعة‬‫وخطورة‬‫صعوبات‬‫في‬‫تطبيق‬‫إجراءات‬
‫ال‬،‫تدقيق‬‫وتقييم‬‫نتائج‬‫تلك‬،‫اإلجراءات‬‫وال‬‫حصول‬
‫على‬‫أدلة‬‫ذات‬‫عالقة‬‫وموثوق‬‫بها‬‫لتكون‬‫أساس‬
‫لرأي‬،‫المدقق‬‫وال‬‫سيما‬‫عندما‬‫تصبح‬‫األحكام‬
‫المهنية‬‫للمدقق‬‫أكثر‬‫موضوعية‬.
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36
 Use separate key audit matters (KAM)
section in the auditor’s report stating
the following introductory paragraph:
‫جديدة‬ ‫فقرة‬ ‫إضافة‬ ‫يجب‬‫تقرير‬ ‫في‬‫ب‬ ‫المدقق‬‫عنوان‬
"‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬“
key audit matters (KAM)،
Key Audit Matters (KAM)
Key audit matters are those matters that, in
our professional judgment, were of most
significance in our audit of the financial
statements of the current period. These
matters were addressed in the context of
our audit of the financial statements as a
whole, and in forming our opinion thereon,
and we do not provide a separate opinion
on these matters.
In addition to the matter described in the
Basis for Qualified Opinion section we have
determined the matters described below to be
the key audit matters to be communicated in
our report.
‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬
‫التي‬ ‫األمور‬ ‫تلك‬ ‫هي‬ ‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬‫في‬
،‫المهني‬ ‫حكمنا‬‫كانت‬‫جوهرية‬ ‫أهمية‬ ‫ذات‬‫تدقي‬ ‫في‬‫قنا‬
‫الحالية‬ ‫للفترة‬ ‫المالية‬ ‫للبيانات‬.
‫ل‬ ‫تدقيقنا‬ ‫سياق‬ ‫في‬ ‫األمور‬ ‫هذه‬ ‫تناولنا‬ ‫تم‬ ‫وقد‬‫لبيانات‬
‫ال‬ ‫ونحن‬ ،‫حولها‬ ‫رأينا‬ ‫تكوين‬ ‫وفي‬ ،‫ككل‬ ‫المالية‬
‫المسائل‬ ‫هذه‬ ‫حول‬ ‫منفصال‬ ‫رأيا‬ ‫نبدي‬.
‫في‬ ‫المسألة‬ ‫وصف‬ ‫إلى‬ ‫باإلضافة‬«‫ا‬ ‫أساس‬ ‫قسم‬‫لرأي‬
‫المتحفظ‬»‫ل‬‫تحديد‬ ‫تم‬ ‫قد‬‫أ‬ ‫أدناه‬ ‫المبينة‬ ‫األمور‬‫تكون‬ ‫ن‬
‫أمور‬‫تدقيق‬‫رئيسية‬‫حولها‬ ‫للتواصل‬‫تقر‬ ‫في‬‫يرنا‬.
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37
‫يجب‬‫على‬‫ال‬‫مدقق‬‫أن‬‫يصف‬‫في‬‫فقرة‬"‫أمور‬‫التدقيق‬‫الرئيسية‬"‫كل‬‫مسألة‬‫من‬‫أمور‬‫التدقيق‬
‫الرئيسية‬‫بشكل‬‫منفصل‬‫وضمن‬‫عنوان‬‫خاص‬‫لكل‬‫مسألة‬.
‫ترتيب‬‫عرض‬‫األمور‬‫من‬‫حيث‬‫التسلسل‬‫متروك‬‫للحكم‬‫المهني‬،‫للمدقق‬
‫يجب‬‫أن‬‫تكون‬‫الشروحات‬‫مقتضبة‬‫ومتوازنة‬succinct and balanced،‫والحد‬‫من‬
‫استخدام‬‫مصطلحات‬‫التدقيق‬‫عالية‬‫التقنية‬highly technical auditing terms،
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38
‫يجب‬‫ذكر‬‫ما‬‫يلي‬:
•‫أمور‬‫التدقيق‬‫الرئيسية‬‫هي‬‫تلك‬‫األمور‬‫التي‬‫حسب‬‫الحكم‬‫المهني‬‫للمدقق‬‫تع‬‫تبر‬‫األكثر‬
‫أهمية‬‫في‬‫عملية‬‫تدقيق‬‫البيانات‬‫المالية‬(‫للفترة‬/‫السنة‬‫الحالية‬)‫و‬
•‫يتم‬‫مالحظة‬‫هذه‬‫األمور‬‫في‬‫سياق‬‫تدقيق‬‫البيانات‬‫المالية‬‫وفي‬‫سياق‬‫عملية‬‫ا‬‫عداد‬‫رأي‬
‫ال‬‫مدقق‬‫حول‬‫البيانات‬‫المالية‬،‫ككل‬‫وال‬‫بدي‬‫ي‬‫المدقق‬‫رأيا‬‫مستقال‬‫حول‬‫هذه‬‫ال‬‫مسائل‬.
•‫لقد‬‫قمنا‬‫بإيصال‬‫أمور‬‫التدقيق‬‫الرئيسية‬(‫مثال‬:‫لمجلس‬‫االدارة‬(.
•‫إن‬‫أمور‬‫التدقيق‬‫الرئيسية‬‫المذكورة‬‫ليست‬‫شاملة‬‫لجميع‬‫األمور‬‫التي‬‫تمت‬‫م‬‫ناقشتها‬‫مع‬
‫مجلس‬‫اإلدارة‬.
•‫وقد‬‫تم‬‫معالجة‬‫هذه‬‫األمور‬‫في‬‫سياق‬‫تدقيق‬‫البيانات‬،‫المالية‬‫وال‬‫نبدي‬‫رأيا‬‫م‬‫ستقال‬
‫بشأن‬‫هذه‬‫المسائل‬.
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‫التدقيق‬ ‫أمور‬ ‫تتضمن‬‫الرئيسية‬‫العناصر‬‫التالية‬:
‫وصف‬‫أمور‬‫التدقيق‬،‫الرئيسية‬‫لماذا‬‫اعتبرت‬‫المسألة‬‫أن‬‫تكون‬‫واحدة‬‫من‬‫األمور‬‫األكثر‬‫أهمي‬‫ة‬‫في‬
‫عملية‬،‫التدقيق‬‫وبالتالي‬‫مصممة‬‫على‬‫أن‬‫تكون‬‫مسألة‬‫تدقيق‬،‫رئيسية‬
‫ملخص‬‫إجراءات‬‫التدقيق‬‫التي‬‫تم‬‫تنفيذها‬.‫وكيف‬‫تم‬‫تناول‬‫هذه‬‫المسألة‬‫في‬،‫التدقيق‬
‫المالحظات‬‫الرئيسية‬‫المتعلقة‬‫بأمور‬‫التدقيق‬‫الرئيسية‬.‫مؤشرا‬‫لنتائج‬‫إجراءات‬‫المدقق‬،
‫اإلشارة‬‫إلى‬‫المعلومات‬‫أو‬‫اإليضاحات‬‫في‬‫البيانات‬‫المالية‬‫المتعلقة‬‫باألمور‬‫الرئيسية‬.
►‫المهني‬ ‫الحكم‬ ‫تطبيق‬APPLY PROFESSIONAL JUDGEMENT
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• Effects of New Accounting Standards
As of January 1, 2013, IFRS 10 (Consolidated Financial Statements), 11 (Joint Arrangements)
and 12 (Disclosure of Interests in Other Entities) became effective. IFRS 10 requires the Group
to assess for all entities whether it has: power over the investee; exposure, or rights, to
variable returns from its involvement with the investee; and the ability to use its power over
the investee to affect the amount of the investor's returns. The complex structure, servicing
and ownership of each vessel, requires the Group to assess and interpret the substance of a
significant number of contractual agreements.
• Valuation of Financial Instruments
The Company’s investments in structured financial instruments represent [x%] of the total
amount of its financial instruments. Due to their unique structure and terms, the valuation of
these instruments are based on entity-developed internal models and not on quoted prices in
active markets. Therefore, there is significant measurement uncertainty involved in this
valuation. As a result, the valuation of these instruments was significant to our audit. The
Company’s disclosures about its structured financial instruments are included in Note 5.
► Examples
Why the matter was considered of most significance
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How the matter was addressed in the audit
41
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 Care may be necessary so that language
used in the description of a KAM
‫صياغة‬ ‫في‬ ‫المستخدمة‬ ‫باللغة‬ ‫االهتمام‬ ‫ضرورة‬
‫الرئيسية‬ ‫التدقيق‬ ‫مسألة‬ ‫ووصف‬:
• Does not imply that the matter has not
been appropriately resolved by the
auditor in forming the opinion on the
financial statements.
•‫بشك‬ ‫تحل‬ ‫لم‬ ‫المسألة‬ ‫هذه‬ ‫أن‬ ‫يعني‬ ‫ال‬ ‫أن‬ ‫يجب‬‫ل‬
‫ح‬ ‫الرأي‬ ‫تشكيل‬ ‫في‬ ‫المدقق‬ ‫قبل‬ ‫من‬ ‫مناسب‬‫ول‬
‫المالية‬ ‫البيانات‬.
• Relates the matter directly to the specific
circumstances of the entity, while
avoiding generic or standardized
language.
•‫المسألة‬ ‫ربط‬(‫األمر‬)‫المحد‬ ‫بالظروف‬ ‫مباشرة‬‫دة‬
‫غي‬ ‫أو‬ ‫عامة‬ ‫بلغة‬ ‫الصياغة‬ ‫تجنب‬ ‫أي‬ ،‫للمنشأة‬‫ر‬
‫واضحة‬.
• Takes into account how the matter is
addressed in the related disclosure(s) in
the financial statements, if any.
•‫اإلشارة‬ ‫كيفية‬ ‫باالعتبار‬ ‫يأخذ‬(‫ذكر‬)‫ال‬ ‫هذه‬‫مسألة‬
‫ال‬ ‫البيانات‬ ‫في‬ ‫العالقة‬ ‫ذات‬ ‫اإليضاحات‬ ‫في‬،‫مالية‬
‫وجدت‬ ‫إن‬.
• Does not contain or imply discrete
opinions on separate elements of the
financial statements.
•‫عناص‬ ‫على‬ ‫منفصلة‬ ‫آراء‬ ‫ضمنا‬ ‫أو‬ ‫يحتوي‬ ‫ال‬‫ر‬
‫المالية‬ ‫البيانات‬ ‫من‬ ‫منفصلة‬.

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• Goodwill
Our audit procedures included, among others, using a valuation expert to assist us in
evaluating the assumptions and methodologies used by the Group, in particular those
relating to the forecasted revenue growth and profit margins for [name of business line].
We also focused on the adequacy of the Group’s disclosures about those assumptions to
which the outcome of the impairment test is most sensitive, that is, those that have the
most significant effect on the determination of the recoverable amount of goodwill.
• Revenue Recognition
Our audit procedures to address the risk of material misstatement relating to revenue
recognition, which was considered to be a significant risk, included:
– Testing of controls, assisted by our own IT specialists, including, among others, those
over: input of individual advertising campaigns’ terms and pricing; comparison of those
terms and pricing data against the related overarching contracts with advertising
agencies; and linkage to viewer data; and
– Detailed analysis of revenue and the timing of its recognition based on expectations
derived from our industry knowledge and external market data, following up variances
from our expectations.
► Examples
How the matter was addressed in the audit
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‫التي‬ ‫الظروف‬‫إيصال‬ ‫بعدم‬ ‫تسمح‬
‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬
43
Circumstances in which
A KAM is Not Communicated
 The auditor shall describe each key
audit matter in the auditor’s report
unless:
‫ف‬ ‫رئيسية‬ ‫تدقيق‬ ‫مسألة‬ ‫كل‬ ‫وصف‬ ‫المدقق‬ ‫على‬‫ي‬
‫إذا‬ ‫إال‬ ‫المدقق‬ ‫تقرير‬:
(a) Law or regulation precludes public
disclosure about the matter; or
(b) In extremely rare circumstances, the
auditor determines that the matter
should not be communicated in the
auditor’s report because the adverse
consequences of doing so would
reasonably be expected to outweigh
the public interest benefits of such
communication. This shall not apply if
the entity has publicly disclosed
information about the matter.
(‫أ‬)‫ع‬ ‫العلني‬ ‫الكشف‬ ‫دون‬ ‫يحول‬ ‫الئحة‬ ‫أو‬ ‫قانون‬‫ن‬
‫المسألة؛‬ ‫هذه‬
(‫ب‬)‫أن‬ ‫المدقق‬ ‫يحدد‬ ،‫للغاية‬ ‫نادرة‬ ‫حاالت‬ ‫في‬
‫ا‬ ‫تقرير‬ ‫في‬ ‫تبلغ‬ ‫أن‬ ‫ينبغي‬ ‫ال‬ ‫المسألة‬‫ألنه‬ ‫لمدقق‬
‫تفوق‬ ‫أن‬ ‫يتوقع‬ ‫أن‬ ‫المعقول‬ ‫من‬ ‫يكون‬ ‫لن‬
‫اآلثار‬ ‫عن‬ ‫اإلبالغ‬ ‫هذا‬ ‫من‬ ‫العامة‬ ‫الفوائد‬
‫لذلك‬ ‫السلبية‬.‫ال‬ ‫كانت‬ ‫إذا‬ ‫ينطبق‬ ‫ال‬ ‫وهذا‬‫منشأة‬
‫المسألة‬ ‫هذه‬ ‫حول‬ ‫المعلومات‬ ‫علنا‬ ‫كشفت‬ ‫قد‬.

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What if there is
No KAM to Report?
44
‫يجب‬‫على‬‫المدقق‬‫في‬‫قسم‬‫أمور‬‫ال‬‫تدقيق‬‫ال‬‫رئيسية‬Key Audit Matters‫ذكر‬‫اآلتي‬:
“‫باستثناء‬‫الموصوفة‬ ‫المسألة‬‫المتحفظ‬ ‫الرأي‬ ‫أساس‬ ‫قسم‬ ‫في‬(‫ال‬ ،‫المعاكس‬‫معارض‬)‫أو‬
،‫باالستمرارية‬ ‫متعلق‬ ‫هام‬ ‫تأكد‬ ‫عدم‬ ‫قسم‬]‫أن‬ ‫حددنا‬ ‫لقد‬‫هناك‬ ‫ليس‬‫أي‬‫تدق‬ ‫أمور‬‫يق‬
‫رئيسية‬[‫أخرى‬]‫تقريرنا‬ ‫في‬ ‫حولها‬ ‫للتواصل‬”.
“Except for the matter described in the Basis for Qualified (Adverse) Opinion
section or Material Uncertainty Related to Going Concern section,] We have
determined that there are no [other] key audit matters to communicate in
our report.
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‫تدقيق‬ ‫أمور‬ ‫يوجد‬ ‫ال‬ ‫إذا‬ ‫ماذا‬
‫عنها؟‬ ‫للتقرير‬ ‫رئيسية‬

Cairo-17/12/2016Cairo-17/12/2016 ISA 701 (New) Communicating Key Audit
Matters
45
What if there is No KAM to
Report? 2/2
‫تدقيق‬ ‫أمور‬ ‫يوجد‬ ‫ال‬ ‫إذا‬ ‫ماذا‬
‫عنها؟‬ ‫للتقرير‬ ‫رئيسية‬
 This can happen in three circumstances: ‫هذا‬‫يمكن‬‫أن‬‫يحدث‬‫في‬‫حاالت‬‫ثالث‬
1. The auditor determines that there are
no key audit matters.
2. The auditor determines that a key audit
matter will not be communicated in the
auditor’s report and no other matters
have been determined to be KAM.
3. The only matters determined to be key
audit matters are those subject of
qualified opinion or existence of a
material uncertainty which is reported
on in separate sections of the report
.1‫تدقيق‬ ‫أمور‬ ‫أي‬ ‫هناك‬ ‫ليس‬ ‫أن‬ ‫المدقق‬ ‫يحدد‬
‫رئيسية‬.
.2‫الرئيسية‬ ‫التدقيق‬ ‫مسألة‬ ‫أن‬ ‫المدقق‬ ‫يحدد‬‫لن‬
‫تحديد‬ ‫يتم‬ ‫ولم‬ ،‫المدقق‬ ‫تقرير‬ ‫في‬ ‫تذكر‬‫أية‬
‫رئيسية‬ ‫تدقيق‬ ‫أمور‬ ‫أنها‬ ‫أخرى‬ ‫أمور‬.
.3‫تدقيق‬ ‫أمور‬ ‫تكون‬ ‫أن‬ ‫المحددة‬ ‫الوحيدة‬ ‫األمور‬
‫وجو‬ ‫أو‬ ‫المتحفظ‬ ‫الرأي‬ ‫موضوع‬ ‫هي‬ ‫رئيسية‬‫د‬
‫في‬ ‫عنه‬ ‫اإلبالغ‬ ‫تم‬ ‫الذي‬ ،‫جوهري‬ ‫تأكد‬ ‫عدم‬
‫التقرير‬ ‫من‬ ‫منفصلة‬ ‫أقسام‬.
• The standard considers it to be rare that
the auditor of a listed entity would not
determine at least one KAM from the
matters communicated with TCWG to be
communicated in the report.
•‫النادر‬ ‫من‬ ‫أنه‬ ‫المعيار‬ ‫ويعتبر‬‫مدقق‬ ‫يحدد‬ ‫ال‬ ‫أن‬
‫ع‬ ‫واحدة‬ ‫رئيسية‬ ‫تدقيق‬ ‫مسألة‬ ‫المدرجة‬ ‫المنشأة‬‫لى‬
‫المكلفي‬ ‫أولئك‬ ‫مع‬ ‫حولها‬ ‫التواصل‬ ‫ليتم‬ ‫األقل‬‫ن‬
‫بالحوكمة‬‫التقرير‬ ‫في‬ ‫لتذكر‬.

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Communication with those Charged
with Governance
46
‫اصل‬‫و‬‫الت‬‫المكلفين‬ ‫أولئك‬ ‫مع‬‫بالحوكمة‬
 Communicate and discuss KAM
throughout the audit to avoid challenges
of discussing them when the FS are
being finalized for issuance.
‫الرئيسية‬ ‫التدقيق‬ ‫أمور‬ ‫ومناقشة‬ ‫التواصل‬‫خال‬‫ل‬
‫أعمال‬‫تحديات‬ ‫لتجنب‬ ‫التدقيق‬(‫عقبات‬)‫مناقش‬‫تها‬
‫عند‬‫من‬ ‫االنتهاء‬‫المالية‬ ‫البيانات‬‫صالحة‬ ‫وتكون‬
،‫لإلصدار‬
 Communication enables TCWG to:
• Seek further clarification where
necessary, and
• Consider whether new or enhanced
disclosures may be useful in light of
the fact that these matters will be
communicated in the auditor’s report
‫التواصل‬‫ي‬ُُ‫ن‬ِّ‫كـ‬َ‫م‬‫المكلفين‬ ‫أولئك‬‫بالحو‬‫كمة‬‫مما‬
‫يلي‬:
•‫و‬ ،‫األمر‬ ‫لزم‬ ‫إذا‬ ‫التوضيح‬ ‫من‬ ‫مزيد‬ ‫طلب‬
•‫أو‬ ‫الجديدة‬ ‫اإلفصاحات‬ ‫إذا‬ ‫ما‬ ‫في‬ ‫النظر‬
‫حقيق‬ ‫ضوء‬ ‫في‬ ‫مفيدة‬ ‫تكون‬ ‫قد‬ ‫المحسنة‬‫أن‬ ‫ة‬
‫سوف‬ ‫األمور‬ ‫هذه‬‫تذكر‬‫تقرير‬ ‫في‬‫ال‬‫مدقق‬.
 If applicable, depending on the facts and
circumstances of the entity and the
audit, communicate the auditor’s
determination that there are no key
audit matters to communicate in the
auditor’s report.
‫وظروف‬ ‫وقائع‬ ‫على‬ ‫يتوقف‬ ‫وهذا‬ ،‫ممكنا‬ ‫كان‬ ‫إذا‬
‫التواصل‬ ،‫والتدقيق‬ ‫المنشأة‬‫المد‬ ‫حدد‬ ‫وإن‬ ‫حتى‬‫قق‬
‫أمور‬ ‫أي‬ ‫هناك‬ ‫ليس‬ ‫أن‬‫رئيسية‬ ‫تدقيق‬‫ف‬ ‫لذكرها‬‫ي‬
‫تقرير‬‫المدقق‬.

Cairo-17/12/2016Cairo-17/12/2016
‫التوثي‬‫ــــ‬‫ق‬
47
The auditor shall include in the audit
documentation:
‫التوثيق‬ ‫في‬ ‫يلي‬ ‫ما‬ ‫ذكر‬ ‫المدقق‬ ‫على‬ ‫يجب‬:
a) The matters that required significant
auditor attention, and
the rationale for the auditor’s
determination as to whether or not
each of these matters is a KAM
‫أ‬)‫كبير‬ ‫اهتمام‬ ‫تتطلب‬ ‫التي‬ ‫األمور‬‫المدقق‬ ‫من‬‫و‬ ،
‫المتبعة‬ ‫االسس‬‫لتحديد‬ ‫المدقق‬ ‫قبل‬ ‫من‬‫إ‬ ‫فيما‬‫ذا‬
‫من‬ ‫كل‬ ‫كانت‬‫هذه‬‫تعتبر‬ ‫األمور‬‫تدقيق‬ ‫أمور‬
‫رئيسية‬.
b) Where applicable, the rationale for the
auditor’s determination that there are
no KAM to communicate in the
auditor’s report; and
‫ب‬(‫حد‬ ‫خالله‬ ‫من‬ ‫تم‬ ‫الذي‬ ‫االساس‬ ،‫ينطبق‬ ‫عندما‬َ‫د‬
‫يجب‬ ‫رئيسية‬ ‫تدقيق‬ ‫أمور‬ ‫وجود‬ ‫عدم‬ ‫المدقق‬
‫تقريره‬ ‫في‬ ‫ذكرها‬.
c) Where applicable, the rationale for the
auditor’s determination not to
communicate in the auditor’s report a
matter determined to be a KAM .
‫ج‬(‫حد‬ ‫خالله‬ ‫من‬ ‫تم‬ ‫الذي‬ ‫االساس‬ ،‫ينطبق‬ ‫عندما‬ّ‫د‬
‫ف‬ ‫رئيسية‬ ‫تدقيق‬ ‫أمور‬ ‫ايصال‬ ‫عدم‬ ‫المدقق‬‫ي‬
‫تقريره‬.
Documentation
Para 18

Cairo-17/12/2016Cairo-17/12/2016 48
Questions?

Cairo-17/12/2016Cairo-17/12/2016
Illustration 1 – Unmodified Opinion When a Material Uncertainty Exists and
Disclosure in the Financial Statements Is Adequate
Unmodified Opinion
We have audited the financial statements of (the Company), which comprise the statement of financial position
as at December 31, 20X1, and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 20X1, and (of) its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in [jurisdiction], and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 6 in the financial statements, which indicates that the Company incurred a net loss of
ZZ during the year ended December 31, 20X1 and, as of that date, the Company’s current liabilities exceeded
its total assets by YY. As stated in Note 6, these events or conditions, along with other matters as set forth in
Note 6, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.

Cairo-17/12/2016Cairo-17/12/2016
Illustration 1 – Unmodified Opinion When a Material Uncertainty Exists and
Disclosure in the Financial Statements Is Adequate
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
[Description of each key audit matter in accordance with ISA 701.]
Responsibilities of Management and Those Charged with Governance for the Financial Statements
[Reporting in accordance with ISA 700 (Revised) – see Illustration 1 in ISA 700 (Revised).21]
Auditor’s Responsibilities for the Audit of the Financial Statements
Report on Other Legal and Regulatory Requirements
[Reporting in accordance with ISA 700 (Revised) – see Illustration 1 in ISA 700 (Revised).]
The engagement partner on the audit resulting in this independent auditor’s report is [name].
[Signature in the name of the audit firm, the personal name of the auditor, or both, as appropriate for the particular
jurisdiction]
[Auditor Address]

Cairo-17/12/2016Cairo-17/12/2016
Illustration 2 – Qualified Opinion When a Material Uncertainty Exists and the Financial
Statements Are Materially Misstated Due to Inadequate Disclosure
Qualified Opinion
We have audited the financial statements of (the Company), which comprise the statement of financial position as at
December 31, 20X1, and the statement of comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, except for the incomplete disclosure of the information referred to in the Basis for Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material respects (or give a true and
fair view of), the financial position of the Company as at December 31, 20X1, and (of) its financial performance and its
cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis for Qualified Opinion
As discussed in Note yy, the Company’s financing arrangements expire and amounts outstanding are payable on
March 19, 20X2. The Company has been unable to conclude re-negotiations or obtain replacement financing. This
situation indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to
continue as a going concern. The financial statements do not adequately disclose this matter. This situation
indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a
going concern. The financial statements do not adequately disclose this fact.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in [jurisdiction], and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified opinion.

Cairo-17/12/2016Cairo-17/12/2016
Illustration 2 – Qualified Opinion When a Material Uncertainty Exists and the Financial
Statements Are Materially Misstated Due to Inadequate Disclosure
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. In addition to the matter described in the Basis for Qualified Opinion section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
[Descriptions of each key audit matter in accordance with ISA 701.]
Responsibilities of Management and Those Charged with Governance for the Financial
Statements [Reporting in accordance with ISA 700 (Revised) – see Illustration 1 in ISA 700 (Revised). 24]
The engagement partner on the audit resulting in this independent auditor’s report is [name].
[Signature in the name of the audit firm, the personal name of the auditor, or both, as appropriate for the
particular jurisdiction]
[Auditor Address]

Cairo-17/12/2016Cairo-17/12/2016
Illustration 3 – Adverse Opinion When a Material Uncertainty Exists and Is Not
Disclosed in the Financial Statements
Report on the Audit of the Financial Statements
Adverse Opinion
We have audited the financial statements of (the Company), which comprise the statement of financial position as at
December 31, 20X1, and the statement of comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, because of the omission of the information mentioned in the Basis for Adverse Opinion section of our
report, the accompanying financial statements do not present fairly (or do not give a true and fair view of), the
financial position of the Company as at December 31, 20X1, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis for Adverse Opinion
The Company’s financing arrangements expired and the amount outstanding was payable on December 31, 20X1. The
Company has been unable to conclude re-negotiations or obtain replacement financing and is considering filing for
bankruptcy. This situation indicates that a material uncertainty exists that may cast significant doubt on the
Company’s ability to continue as a going concern. The financial statements do not adequately disclose this fact.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in [jurisdiction], and we have fulfilled our ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our adverse opinion.

Cairo-17/12/2016Cairo-17/12/2016
Illustration 3 – Adverse Opinion When a Material Uncertainty Exists
and Is Not Disclosed in the Financial Statements
Responsibilities of Management and Those Charged with Governance for the Financial Statements
[Reporting in accordance with ISA 700 (Revised) – see Illustration 1 in ISA 700 (Revised). 27]
[Signature in the name of the audit firm, the personal name of the auditor, or both, as appropriate for the
particular jurisdiction]
[Auditor Address]

Cairo-17/12/2016
Thank You
Dr. Daoud Y. Sobh
Email: daoud.sobh@iktissad.com

ISA 701 (New) Communicating Key Audit Matters in the Independent Auditor’s Report (detailed)

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