Presentation of KAMs in the Auditor's Report (1)

Question 1

What should each KAM detailed in auditor’s report refer to?

Answer 1

Related disclosure in FSs

Question 2

What does each KAM relate to? (considered significant)

Answer 2

Why the matter was considered to be significant and therefore a KAM

Question 3

What does each KAM relate to? (matter addressed)

Answer 3

How the matter was addressed in the audit

Question 4

How will KAMs be communicated in auditor’s report of a listed entity?

Answer 4

Where there are matters that required significant auditor attention

Question 5

What if auditor’s opinion is unmodified?

Answer 5

KAM still needs to be communicated because of the fact that matters have required significant auditor attention

Question 6

What if auditor’s opinion is modified?

Answer 6

KAMs will still be communicated if there are matters that have required significant auditor attention

Question 7

What happens where the auditor’s opinion is modified in relation to a KAM?

Answer 7

Issue would not be disclosed in the KAm paragraph but in the “Basis for modified opinion” paragraph

Question 8

What happens with any concerns relating to an entity’s ability to continue as a going concern?

Answer 8

Would not be disclosed in the KAM, paragraph but in the “Material uncertainty relating to going concern” paragraph