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When a qualified/adverse opinion is issued, there is no need for the reasons for giving qualified/adverse opinion which are included in “basis for qualified/adverse opinion” to be included again in the “key audit matters” section.
Instead , a reference to the reasons for qualified/adverse opinion will be provided.
What is this reference ? How and where it is provided, is it included under the heading “key audit matters” or a separate heading is included altogether ?Please can you tell me what are you quoting from? I do not recognise this as taken from our notes.
Any “matter” will be described in one place in an auditor’s report. If an opinion is modified, this is referenced to the basis of opinion section, where it is described. (See examples in sections 6-9 of Chapter 6.)
A modified opinion is, by nature, a KAM, but since it will be described in the basis of opinion section it is not described again. However, if, for example, this were the only KAM it would be rather weird not to have a KAM section (which is required). In this case the KAM section might simply say “Except for the matter described in the Basis of Qualified/Adverse Opinion section, we have determined that there are no other key audit matters to communicate in our report.”
I don’t think you need to worry too much about this level of detail for AA – these relationships between sections of the auditor’s reports is the sort of thing that will be examined in AAA. In AA auditor’s reports will most likely be examined in an OT-case question.
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