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Hello,
My question is that the Kam section is required for all listed entities. So if I was given a question in the exam where it is not mentioned that the co is a listed co, I would not have to refer to the Kam section being included in the auditor’s report, right?
Moreover the new section ‘Material Uncertainty relating to going concern’ – does it apply only to the auditor’s report for listed co?
Finally can you give me an example of when we now use an Emphasis of matter paragraph please?
Thanks
Use of emphasis of matter paragraph is adequately covered in the technical article titled “New audit report”
Any of these ISAs and IASs / IFRSs are mandatory for listed entities but there’s no reason why others should not also comply / apply
It’s like saying that the concept of corporate governance is a must for listed entities but it is irrelevant for any other than a listed entity
If it’s a good idea, it’s a good idea
What you COULD say is something like”The question does not specify whether XY Co is listed but the auditor could nevertheless use a KAM paragraph within the audit report”
However, the likelihood is that the client will be listed because, in the UK, most non-listed entities are private entities and are not therefore mandatorily required to have an audit
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