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Hi Tutor,
Does listed company’s audit report includes EOM paragraph or is it only for unlisted companies?
Thanks.
Please see this post https://opentuition.com/topic/kam-vs-eom-paragraphs-in-listed-companies
Hi Tutor,
What does it mean when it says KAM will take precedence over EOM in listed companies.
One of the teachers who has conducted many ACCA practice to pass webinars in Pakistan says EOM is for unlisted companies whereas ISA 701 and 706 do not say anything like that. Matters which are fundamental to the understanding of the users and significant matters should be dealt with accordingly, I think.
Thanks.
Please see page 117 of our notes which explain the interaction between the additional paragraphs.
What can I say – if that is what they have said they are wrong.
You will see on page 117 an example of an EoM – now that doesn’t indicate if the company is listed or unlisted. If the company was listed and “the matter” met the definition of a KAM (unlikely in this case) then it would be reported as a KAM (this is what is meant by precedence). But if it’s not a KAM it still gets reported as an EoM – it’s not ignored – (nor is is duplicated!)
Got it. One more question regarding KAM, please..
If a matter gives rise to modified opinion, will it got in KAM’s section as well as a reference?
Thanks.
No – any “thing” that needs mentioning gets only one mention – a matter that give rise to a modified opinion is in any case, for a listed company, a KAM – but it doesn’t need drawing to readers’ attention twice 🙂
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