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Hello..
The new audit reports now include kam paragraphs …how would I judge whether what should b included in it …it requires judgement ..the matter that seems significant may actually not be significant ..can u please refer to practice questions covering thou roughly on audit reports ….
NO! That’s not possible! The new audit reports have just been introduced in time for last September 2016 sitting and KAMs were available for examination only from that sitting
What I can say is that something that is significant in your mind may be totally immaterial in my mind (and vice versa)
So … it comes down to subjectivity
And that distills down to the skill, judgement, experience and expertise of the auditor
And it’s a matter for individuals. It isn’t even necessarily the case that two partners from the same firm would view the same matter as a KAM
But your P7 examiner will most likely make it very, very clear that a matter is a KAM or not
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