Amendments to ASA 701Amendments to ASA 701

Amendments to ASA 701

1. Existing paragraph 5 is amended to read as follows:

This Auditing Standard applies to audits of general purpose financial reports of listedpublicly traded entities and circumstances when the auditor otherwise decides to communicate key audit matters in the auditor’s report. This Auditing Standard also applies when the auditor is required by law or regulation to communicate key audit matters in the auditor’s report.3 However, ASA 705 prohibits the auditor from communicating key audit matters when the auditor disclaims an opinion on the financial report, unless such reporting is required by law or regulation.4

1. Existing paragraph A59 is amended to read as follows:

The determination of key audit matters involves making a judgement about the relative importance of matters that required significant auditor attention. Therefore, it may be rare that the auditor of a general purpose financial report of a listedpublicly traded entity would not determine at least one key audit matter from the matters communicated with those charged with governance to be communicated in the auditor’s report. However, in certain limited circumstances (e.g., for a listedpublicly traded entity that has very limited operations), the auditor may determine that there are no key audit matters in accordance with paragraph 10 because there are no matters that required significant auditor attention.