- 15 Marks
AA – May 2018 – L2 – Q5 – Completion Procedures and Reporting
Explains key audit matters under ISA 701, objectives of ISA 701, and the requirements for determining and communicating KAM.
Question
In January 2015, the IAASB issued ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. This standard is required to be applied to the audit of all listed entities.
Required:
a) Explain the term Key Audit Matters as defined in ISA 701. (2 marks)
b) State TWO objectives of ISA 701. (2 marks)
c) What are the THREE matters that ISA 701 requires the auditor to take into account when making a determination of Key Audit Matters? (6 marks)
d) How should the auditor communicate Key Audit Matters? (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit opinion, Audit Reporting, ISA 701, Key Audit Matters, Listed entities
- Level: Level 2
- Topic: Completion Procedures and Reporting
- Series: MAY 2018
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