- 30 Marks
AAA – May 2017 – L3 – Q1 – Audit Reporting
Prepare briefing notes covering benefits of IAASB auditor reporting project, sections of ISA 700 report, and explanation of Key Audit Matters.
Question
You are Aremu Ana, an Audit Partner at Danda Audit firm who has kept pace with the International Auditing and Assurance Standards Board’s (IAASB) new and revised reporting standards which lay the foundation for the future of global auditor’s reporting and improved auditor communication.
You have concluded arrangements with the Human Capital Department of the firm to train the firm’s audit team, which includes trainees, supervisors, and managers. The training programme has been fixed to hold in two months’ time. You are now preparing notes that will assist in educating the audit team and make them appreciate the new standards.
Required:
Prepare a training briefing note which:
a. Clarifies the intended benefits of the IAASB’s new auditor reporting project. (5 Marks)
b. Identifies and describes the different sections of the new auditor’s report as required by ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements. (20 Marks)
c. Explains the term ‘Key Audit Matters’ (KAM), stating any TWO matters an auditor is required to take into account in the determination of KAM in accordance with ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Auditor's Report, IAASB Reporting Standards, ISA 700, ISA 701, Key Audit Matters (KAM)
- Level: Level 3
- Topic: Audit Reporting