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Many thanks for all your previous help.
For some reason i still am not clear on the difference between a KAM, OM and EoM paragraph.
Is their a clear differentiation?
Try this article:
I think that KAMs can be summed up as: items selected from matters which are communicated with those charged with governance. Matters which are discussed with those charged with governance are then evaluated by the auditor who then determines those matters which required significant auditor attention during the course of the audit.
EoM would no appear to be very rare events because these are likely either to be included in the material uncertainty as to going concern or the KAMS. Noteif in the KAM the matter cannot also be in an EoM.
Other matters: If the auditor considers it necessary to communicate a matter other than those that are presented or disclosed in the financial statements that, in the auditor’s judgment,is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report, the auditor shall include an Other Matter paragraph in the auditor’s
report. The usual example is where there is something in the directors’ report that contradicts the FS (and the FS are correct). Note that the director’s report is no covered by an audit report so the audit opinion cannot be qualified if the information in the directors’ report is wrong.Hi Ken,
I have a question in relation to part of your response to clarify my understanding.You wrote:
Other matters: If the auditor considers it necessary to communicate a matter other than those that are presented or disclosed in the financial statements that, in the auditor’s judgment,is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report, the auditor shall include an Other Matter paragraph in the auditor’s
report. The usual example is where there is something in the directors’ report that contradicts the FS (and the FS are correct). Note that the director’s report is no covered by an audit report so the audit opinion cannot be qualified if the information in the directors’ report is wrong.As directors’ report is other information, shouldn’t it be included in Other information paragraph? Not Other matter as above stated?
Please refer to the September 2019 notes which have been technically updated and clarified (considerably) since 2016. Yes that would be “other information” rather than “other matter) – see page 27 of the notes.
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