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Hey guys,
Was wondering if someone could help me – freaking out before the exam tomorrow!
I just can’t get my head around what would be a KAM and what would be an EOM – would anyone be able to help me!?
Also am i right in saying that you can’t have something in both an EOM or KAM, it’s either one or the other??
Yep an item can’t be in both.
EoM are for matters FUNDAMENTAL to user understanding (eg fin statements prepared on a basis other than IFRS, as required by a law/regulation) while KAM are for SIGNIFICANT matters (ie lesser importance than EoM but still important for user understanding)
Erm is this right? I though KAMS were highlighted as they were deemed to be a significant risk to the auditor (judgements, estimates etc)
Whereas EoM are significant to the shareholder and were included in the audit report to bring emphasis to items that are already in the financial statements.
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