CTHIn ForceLegislation
ASA 701 - Communicating Key Audit Matters in the Independent Auditor’s Report - December 2015
Determining Key Audit MattersDetermining Key Audit Matters
Start here
Get a plain-English read of Determining Key Audit Matters
Turn the raw legal text into a practical explanation grounded in ASA 701 - Communicating Key Audit Matters in the Independent Auditor’s Report - December 2015.
Determining Key Audit Matters
- 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: (Ref: Para. A9–A18)
- Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with ASA 315.[5] (Ref: Para. A19–A22)
- Significant auditor judgements relating to areas in the financial report that involved significant management judgement, including accounting estimates that are subject to a high degree of estimation uncertainty. (Ref: Para. A23–A24)
- The effect on the audit of significant events or transactions that occurred during the period. (Ref: Para. A25–A26)
- The auditor shall determine which of the matters determined in accordance with paragraph 9 of this Auditing Standard were of most significance in the audit of the financial report of the current period and therefore are the key audit matters. (Ref: Para. A9–A11, A27–A30)