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hello sir
i wanted to know if the past questions testing about audit reports are still relevant?
is there major difference between the old audit report and new audit report?i am reading the past papers of p7 and when questions regarding audit reports are there i am reading that as well and i am unsure if its valid or not so should i not read those questions or should i read them ..
You can read them if you want – the general principles haven’t changed … the auditors are still reporting on the truth and fairness of the view shown by the financial statements
But the format has changed dramatically (as you know) and no publisher is going to back into history to make current an answer that was relevant at the time
Possibly better not to read those answers where they concern the format of the audit report
Instead, read the technical article … at least twice every day between now and the exam
okay thankyou sir
can you suggest any reading material to read for audit reports from the basics ..which covers everything related to audit reports?is there any link in acca site?I have a question regarding KAM I.e when to use it . Is it used when qualified/adverse/disclaimer of opinion given???
Sephora and Syednomanshah, may I recommend that you both read, twice every day, the two technical articles from the P7 technical article section with titles involving the new audit reports
Sephora, you should find everything that you need in those two articles
Syednomanshah, the same comment applies to you
I have read both the articles. But I am not very much on it.i need summary of it. Inclusion of KAM in case of different opinions.
Disclaimer? No KAM
Qualified or adverse opinion? KAM is still relevant and will be incorporated into the audit report
OK
hello sir
i want to ask you one more thing
are there any changes to any accounting standards or auditing standards
i am sorry.. i am using a book from 2012 and reading past papers so just to be on teh safe side i wanted to confirm if any accounting or auditing standards are changed.. or any new addedIAS 11 and IAS 18 no longer exist and IAS 18 has been replaced by IFRS 15
There’s a whole new raft of changes in IASs concerning audit reports
I suggest that you don’t read too many answers on this subject from past papers
Instead there are two good articles on the P& technical articles page on this site that you MUST read – twice each day between now and the exam
There will, without question, be other standards that have been introduced or that have been revised but, off the top of my head, I can’t think of any
OK?
ok thankyou and finally i would like to know ..
when writing answers .. should i make reference to standards fr eg… according to isa 315…
and write the answer? or can i write it without refering to standards?There are NO marks for knowing nor quoting numbers, titles, section numbers of Acts, IFRSs, EDs, ISAs, IASs
You can learn them if you really want to but you’ll be wasting your time!
Hi Mike,
I’ve read the new. Technical articles regarding the new auditor’s report.I don’t know if I understand it correctly but just wanted to confirm with you,is it correct that it is not needed.the emphasis of matter paragraph anymore,if you use KAM for that matter?If the matter is not as significant to be included in KAM,we must include it in the emphasis of matter para?Is there any other differences between the two o f them?
Thank you,
Eri
You can, of course, have significant audit matters in the KAM and those matters will not then be the subject of emphasis of matter paragraphs
But it is available to have matters which are not the subject of KAMs themselves to have their own EOM paragraph
OK?
“Is there any other differences between the two o f them?”
KAMs are not to be used simply as a repetition on matters already disclosed within the financial statements whereas EOMs are
It appears to come down to auditor judgement as to whether a matter is “Key” or not
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