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    Admin posted in the group CA Final Audit Discussion Group

    1 year, 5 months ago

    Before concluding the audit, there was a difference of opinion between the audit committee
    and the auditors as to which among the following are the areas which the auditor should
    take into account to determine “Key Audit Matter” as per SA 701:
    (I) The effect on audit of significant transactions that took place in the FY.
    (II) Areas of high risk as assessed and reported by management’s expert.
    (III) Significant auditor judgement relating to areas in the financials that involved
    significant management judgement.
    As per SA 701- Communicating Key audit matters in the Independent auditor’s Report,
    which among the above-mentioned areas should CA & Co. take into account to determine
    “Key Audit Matter”?

    Options:

    (a) (I) & (III)
    (b) (II) only
    (c) (I) & (II)
    (d) (I), (II) & (III)

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