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Definitions
Key audit matters are those which, in the auditor’s professional judgement, were of most significance in the audit of the financial statements.
Instructions
Determining key audit matters
The auditor shall determine, from the matters communicated to those charged with governance, those matters that required significant audit attention in performing the audit of the consolidated annual accounts. Auditors should take into account areas of higher assessed risk of material misstatement, significant auditor judgements or the effect of significant events or transactions during the period audited.
Communicating key audit matters
The auditor shall describe each key audit matter in a separate section of the [link title="auditor's%20report" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FStatement-of-Assurance.aspx" /]
, noting that the auditors do not provide a separate opinion on those matters. The auditor shall not communicate a matter in the Key audit matters section of the opinion if the auditor would be required to [link title="modify%20the%20opinion" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FModified-opinion.aspx" /]
as a result of that matter.
For example the ECA reported key audit matter in its [link new-window title="2017%20annual%20report" link="https%3A%2F%2Fwww.eca.europa.eu%2Flists%2Fecadocuments%2Fannualreports-2017%2Fannualreports-2017-en.pdf%23page%3D13" icon="external-link" /]
.
Resources
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[icon-list-item title="IAASB%20Auditor%20Reporting%20Toolkit" description="illustrative%20examples%20of%20key%20audit%20matters" link="https%3A%2F%2Fwww.ifac.org%2Fsystem%2Ffiles%2Fpublications%2Ffiles%2FIAASB-Auditor-Reporting-Toolkit-Illustrative-Key-Audit-Matters.pdf" linking="new-window" icon="external-link" /]
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[standards]
[link new-window title="ISA%20701" link="https%3a%2f%2fwww.ifac.org%2fsystem%2ffiles%2fpublications%2ffiles%2fIAASB-2020-Handbook-Volume-1.pdf%23INTERNATIONAL%2520STANDARD%2520ON%2520AUDITING%2520701" /]
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