Auditor’s ReportAuditor’s Report

Auditor’s Report

Determining Key Audit Matters Related to Fraud

1. In applying ASA 701,[32] the auditor shall determine, from the matters related to fraud 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. A177–A183)
   1. Identified and assessed risks of material misstatement due to fraud;
   2. The identification of fraud or suspected fraud; and
   3. The identification of significant deficiencies in internal control that are relevant to the prevention and detection of fraud.
2. In applying ASA 701,[33] the auditor shall determine which of the matters determined in accordance with paragraph 60 were of most significance in the audit of the financial report of the current period and therefore are key audit matters. (Ref: Para. A184–A186)

Communicating Key Audit Matters Related to Fraud

1. In applying ASA 701,[34] in the Key Audit Matters section of the auditor’s report, the auditor shall use an appropriate subheading that clearly describes that the matter relates to fraud. (Ref: Para. A187–A192)