Communicatio

(b) If applicable, depending (a) Those matters The auditor

on the facts and the auditor has shall
n with Those
Charged with REQUIREMENTS
circumstances of the entity determined to be communicate Governance
and the audit, the auditor’s
determination that there are
the key audit with those FOR PAS 701:
matters; or charged with
no key audit matters to
communicate in the auditor’s
KEY AUDIT
The auditor shall describe each
key audit matter, using an
MATTERS
appropriate subheading, in a Communicati
separate
ng Key Audit
section of the auditor’s report
under the heading “Key Audit Matters
Matters,” unless the
Key Audit Matters Not a circumstances in
Substitute for Expressing a paragraphs 14 or 15 apply. The
Modified Opinion introductory language in this
The auditor shall not section of the auditor’s report Determining
communicate a matter in the shall state
Key Audit Matters section of that:
Key Audit
the auditor’s report (a) Key audit matters are those Matters
when the auditor would be matters that, in the auditor’s
required to modify the opinion professional judgment, were of
in accordance with PSA 705 most Documentati
(Revised) as a significance in the audit of the The auditor shall determine, on
result of the matter. financial statements [of the from the matters
current period]; and communicated with those
(b)These matters were addressed charged with governance,
in the context of the audit of the those matters that required
Descriptions of Individual Key Audit Matters financial statements as a whole, significant auditor attention in
13. The description of each key audit and in forming the auditor’s (a) The matters that required
performing the audit. In
matter in the Key Audit Matters section of significant auditor attention
making this determination,
the auditor’s report shall as determined in accordance
the auditor shall take into
include a reference to the related with
account the following:
disclosure(s), if any, in the financial paragraph 9, and the
statements and shall address: rationale for the auditor’s
(a) Areas of higher assessed
(a) Why the matter was considered to be determination as to whether
risk of material misstatement,
one of most significance in the audit and or not each of these
or significant risks identified
therefore matters is a key audit matter
in
determined to be a key audit matter; and
accordance with PSA 315
(Revised).5 (c) Where applicable, the (b) Where applicable, the rationale for
rationale for the auditor’s the auditor’s determination that there
(b) Significant auditor judgments relating to determination not to
(c) The effect on the audit of are no key audit
areas in the financial statements that communicate in the
significant events or transactions matters to communicate in the auditor’s
involved auditor’s report a matter report or that the only key audit matters
that occurred during the period. significant management judgment, including determined to be a key audit to
accounting estimates that have been matter. communicate are those matters
identified as
REQUIREMENTS FOR PAS 700
 Forming an Opinion on the
Financial Statements
The auditor shall form an opinion on
whether the financial statements are
prepared, in all material respects, in
accordance with the applicable financial
In order to form that opinion, the auditor
shall conclude as to whether the auditor
has obtained reasonable assurance
about whether the financial statements
as a whole are free from material
misstatement, whether due to fraud or
error. That conclusion shall take into
account:
The auditor shall evaluate whether the
financial statements are prepared, in all
material respects, in accordance with the
requirements of the applicable financial
The auditor shall evaluate whether the
financial statements adequately refer to
or describe the applicable financial
reporting framework.
Supplementary Information
Form of Opinion Auditor’s Report Presented with the Financial
Statements
The auditor shall express an unmodified The auditor’s report shall be in If supplementary information that is not
opinion when the auditor concludes that writing. required by the applicable financial
the financial statements are prepared, in reporting framework is presented with
all material respects, in accordance with the audited financial statements, the
auditor shall evaluate whether, in the
auditor’s professional judgment,
supplementary information is
1. Title
nevertheless an integral part of the
If the auditor: 2. Addressee
financial statements due to its nature or
(a). concludes that, based on the audit evidence 3. Auditor’s Opinion
how it is presented. When it is an
obtained, the financial statements as a whole 4. Basis for Opinion
integral part of the financial statements,
are not free from material misstatement; or 5. Going Concern
the supplementary information shall be
(b). is unable to obtain sufficient appropriate 6. Key Audit Matters
covered by the auditor’s opinion.
audit evidence to conclude that the financial 7. Responsibilities for the
statements as a whole are free from material Financial Statements
misstatement, the auditor shall modify the 8. Auditor’s Responsibilities for
opinion in the auditor’s report in accordance with the Audit of the Financial If supplementary information that is not
PSA 705 (Revised). Statements required by the applicable financial reporting
9. Location of the description of framework is not considered an integral part
the auditor’s responsibilities for of the audited financial statements, the
the audit of the financial auditor shall evaluate
statements whether such supplementary information is
10. Other Reporting presented in a way that sufficiently and
Responsibilities clearly differentiates it from the audited
11. Name of the Engagement financial statements. If this is not the case,
Partner then the auditor shall ask management to
12. Signature of the Auditor change how the unaudited supplementary
13. Auditor’s Address information is presented. If management
14. Date of the Auditor’s Report refuses to do so, the auditor shall identify the
unaudited supplementary information and
explain in the auditor’s report that such
supplementary information has not been
audited.