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K.A.M Auditors Report

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › K.A.M Auditors Report

  • This topic has 7 replies, 4 voices, and was last updated 6 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • August 30, 2016 at 2:29 pm #336264
    lizzie
    Member
    • Topics: 17
    • Replies: 19
    • ☆

    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

    August 30, 2016 at 3:10 pm #336286
    teeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    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

    August 30, 2016 at 4:13 pm #336317
    lizzie
    Member
    • Topics: 17
    • Replies: 19
    • ☆

    Thanks a million , much appreciated

    August 30, 2016 at 5:31 pm #336344
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    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

    August 30, 2016 at 7:22 pm #336368
    lizzie
    Member
    • Topics: 17
    • Replies: 19
    • ☆

    Thanks a million Mike

    August 31, 2016 at 7:47 am #336475
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    You’re welcome

    August 31, 2016 at 5:38 pm #336606
    seanmc2607gmailcom
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    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

    August 31, 2016 at 6:19 pm #336618
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    1) ‘Material uncertainty related to going concern’

    Yes

    2) KAM Paragraph

    Yes, if it’s not the subject of a ‘Material uncertainty related to going concern’

    So, if it’s a close call, then it would be a KAM

    3) EOM Paragraph

    No

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