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Hello Sir, I would like ask the position of KAM,EoM and Material Uncertainty related to Going Concern(MUGC) in the audit report.
Is it have two possible choices?Is it both correct?
1.EoM ,MUGC ,KAM(as EoM need to be position immediately after the basis of opinion paragraph)
2.MUGC,KAM ,EOM (as EoM have the choice to put before or after the KAM)
Thank you.
The order is MURGC, KAM, EoM or MURGC, EoM, KAM
i.e. EoM before or after KAM depending on auditor’s judgment of relative significance (as you say).The auditor’s report examples in the appendix to ISA 570 Going Concern show that MURGC (if one) is presented before KAM.
If other information is materially misstated, the opinion is not modified
The other information is placed immediately after the basis of opinion but before KAM,so the order will become(I) MURGC, OI, KAM/Eom, Eom /Kam (ii) OI ,MURGC,KAM/Eom ?Thank you.
and if the other information is not material misstated,it is placed after the KAM section,and if Eom also placed after the KAM, which one will be placed first?OI or Eom?
Thank you.
See page 105 of the notes for the general running order – I have explained the interaction when there is EoM and KAM – I don’t think you need to conceive situations in which an auditor’s report my include everything that might possibly feature in an auditor’s report. It would be RARE for an auditor’s report to report inconsistency in other information – but if it did I think this would come after reporting all the matters that relate to the financial statements and the audit thereof and for reference to other information which is not in the financial statements and not audited to come later.
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