Where an auditor has only written representation as an evidence for the basis in which provision is calculated, will it be appropriate for the auditor to include this in the emphasis on matters paragraph?
A great question - theoretically yes, but from different perspectives. Remember in the EoM you are drawing shareholders attention. In the KAM you'd be explaining why that part of the accounts was more difficult to audit
emphasis of matter paragraph and KAM are different meaning my dear, emphasis of matter para is written based on Audit findings activities on the other-hand KAM is the auditors judgments which is given to the audit report based on the discussion those charged with governance.
Thank you for your great explanation
You are welcome Paulsen - great to see you back 😊
Where an auditor has only written representation as an evidence for the basis in which provision is calculated, will it be appropriate for the auditor to include this in the emphasis on matters paragraph?
Thank you!
Could you explain other half of KAMs please ?
Hi Yagya - the other half?
Can same matter highlight in emphasis of matter paragraph and KAM paragraph
A great question - theoretically yes, but from different perspectives. Remember in the EoM you are drawing shareholders attention. In the KAM you'd be explaining why that part of the accounts was more difficult to audit
@@amandalovestoaudit thank you
as per SLAuS you cannot duplicate a matter in EOM and KAM. use the theoretical knowledge and auditors professional judgement to differentiate.
emphasis of matter paragraph and KAM are different meaning my dear, emphasis of matter para is written based on Audit findings activities on the other-hand KAM is the auditors judgments which is given to the audit report based on the discussion those charged with governance.
Thank you
You’re welcome Chanu - thanks for watching ☺️
India SA 701 COMMUNICATING KEY AUDIT MATTER IN INDEPENDENT AUDITOR'S REPORT