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Hi Sir Mike!
Just want to ask regarding the audit report format. Some answers say that ‘Basis for Qualified Opinion’ paragraph is placed immediately after the opinion paragraph. And that ‘Adverse Opinion’ is preceded by ‘Basis for Modification’.
So the arrangement is ‘Basis for Modification’ then ‘Adverse Opinion’, then ‘Basis for Adverse Opinion’ on the auditor’s report right?
But how come in Q5 of Dec 2012, (interim financial report) it says ‘Basis for Qualified Conclusion’ presented immediately BEFORE the qualified conclusion?
Shouldn’t ‘Basis for Qualified Conclusion’ be placed immediately AFTER the qualified conclusion?
Oh and by the way, what is a KAM? Is it short for something?
I’m quite confused with the correct format.. Hope to hear from you soon.
Thanks.
Best regards,
Kyle“But how come in Q5 of Dec 2012, (interim financial report) it says ‘Basis for Qualified Conclusion’ presented immediately BEFORE the qualified conclusion?”
December 2012 pre-dates the revision to the audit report formats
KAM? I can’t believe that you’re facing the exam in a matter of weeks and you don’t know what a KAM is!!
Key Audit Matters
The term ‘key audit matters’ is defined in ISA 701 as:
‘Those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statements of the current period. Key audit matters are selected from matters communicated with those charged with governance.’
Here’s the link to a Student Accountant article that you really should read
OK?
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