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Hi Mike
Please can you help me ?
I’m working through the Auditors Report and was wondering about when given an unmodified Auditors report and given the Key Audit Matters its says at the bottom ..
that the Emphasis of Matter and Other Matter paragraphs are still retained in ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report and the concepts involved have not been overridden by the new ISA 701 requirements
So my question is whats the difference in using a KAM or EOM as both give rise to issues to be brought to the attention of the readers of the report
Thanks
KAM = significant issue
significant issue you could think like..its very significant issue..arghhh ..the auditor thinks that the issue is so headache
EOM= fundamental issue
fundamental means, the issue is needed to be understand first before another issue
extra notes
EOM can be placed after basis of opinion, before KAM, or after KAM
Other matters paragraph
involved in telling the reader that:
the report was audited by ex auditor
the opening balance was not audited (maybe they dont need have auditing before)
KAM cannot be replaced by EOM, nor OM
KAM does not modify the reports, nor opinions
EOM modifies report, but not opinions
thats my 2 cents though
Mr Mike help me scan my content, knock my heads off if there is mistake
KAM is the auditor reporting to the world those matters that the auditor found particularly worthy of great attention in the course of the audit
EOMs are paragraphs that refer to (or repeat) matters that the client has already included and explained and properly presented within the financial statements
OMs are paragraphs that refer to (or repeat) matters that the client has already included NOT within the financial statements for example within the Chair’s report but with which the auditor disagrees or where the matter is inconsistent with something that IS included within the financial statements
Hi there,
Ive read the examiners article on the new audit report and Im confused on the issue of going concern.
Can going concern be mentioned in the new auditors report in
1) ‘Material uncertainty related to going concern’
and/or
2) KAM Paragraph
and/or
3) EOM Paragraph
Thank you
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