ISA 701 — Communicating Key Audit Matters in the Independent Auditor’s Report
ISA 701 is an international pronouncement addressing determining and communicating key audit matters where applicable. It addresses determining and communicating matters of most significance in the audit when the standard applies. A key audit matter is not a substitute for disclosure in the financial statements or a modified opinion where one is required.
Worked example
The auditor describes why an estimate was significant and how the audit addressed it.
Common mistake
A key audit matter is not a separate opinion and does not substitute for required disclosure or a modified opinion.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |