Communicating key audit matters

b. KAMs are described in a separate section in the auditor‟s report under the
heading „key audit matters‟.
For each KAM, the description must:

i. Be clear, concise, understandable and entity specific;
ii. State why the matter was considered to be one of most significance
in the audit and therefore determined to be a key audit matter;
iii. State how the matter was addressed in the audit; and
iv. Be a reference to the related disclosure elsewhere in the financial
statements.

ii) The matters to be expressly stated in the report of the auditors of a company to its members on the accounts examined by them as stated in CAMA 2020 include:

1. Title: Clearly indicating that it is an auditor’s report.
2. Addressee: The report should be addressed to the appropriate authority, typically the members of the company or those charged with governance.
3. Opinion: A clear statement of the auditor’s opinion on the financial statements, specifying whether they are presented fairly in accordance with the applicable financial reporting framework.
4. Basis for Opinion: A description of the basis for the auditor’s opinion, including a statement that the audit was conducted in accordance with International Standards on Auditing (ISAs).
5. Key Audit Matters: If applicable, a section that outlines Key Audit Matters (KAMs) relevant to the audit.
6. Responsibilities of Management: A description of management’s responsibilities for the preparation and fair presentation of the financial statements.
7. Responsibilities of the Auditor: A description of the auditor’s responsibilities, including the auditor’s obligation to obtain reasonable assurance that the financial statements are free from material misstatement.
8. Signature of the Auditor: The report must be signed by the auditor or the audit firm.
9. Auditor’s Address: The location of the auditor or audit firm.
10. Date of the Report: The date when the audit report was issued.