This course covers Auditing Standard: ISA 701 (new) Communicating Key Audit Matters in the Independent Auditor’s Report. Significant changes to the auditor’s report are coming from December 2016 – no longer will auditor’s reports be the same for every listed entity. Of particular significance is the introduction of key audit matters into the auditor’s report for listed entities.
Description
This course covers Auditing Standard: ISA 701 (new) Communicating Key Audit Matters in the Independent Auditor’s Report. Significant changes to the auditor’s report are coming from December 2016 – no longer will auditor’s reports be the same for every listed entity. Of particular significance is the introduction of key audit matters (KAMs) into the auditor’s report for listed entities.
Auditors need to understand the changes to auditor’s reports in order to:
- Develop new processes to enable them to identify matters which may become KAMs and require inclusion in the auditor’s report.
- Communicate these to the audit committee and/or Board to ensure appropriate disclosure in the financial statements.
Some of the changes to auditor reporting apply to listed entities only and others apply to all entities. This course covers the changes that are mandatory for listed entities in relation to the identification and development of KAMs.
The course focusses on the most significant change relating to the identification and communication of key audit matters (KAMs) and looks at the criteria for selecting these matters, some areas where we expect KAMs to be raised, and some tips and traps.
A companion course Enhanced auditor reporting: for all entities covers the other changes to auditor’s reports resulting from the new and revised auditor reporting standards.
This one hour online course forms part of the FastClass short course suite.
Learning objectives
Explain and apply the major change relating to listed entities in the new and revised standards issued by the International Auditing and Assurance Standards Board, specifically key audit matters (KAMs), including:
- What is a KAM and what are the selection criteria for identifying them?
- What are the implications of KAMs for financial statement disclosures?
- When, what and how does the auditor communicate KAMs with the audit committee or Board?
- What is the appropriate way to document and report on KAMs?
Audience
This course is suitable for auditors and public practitioners.