Document ID: chunk:federal_register_of_legislation:F2023C01136:reg:9:p3
Version: federal_register_of_legislation:F2023C01136
Segment Type: reg
Provision Reference: reg 9 (pt 3/24)
Character Range: 12107–15309

a specific audit engagement in accordance with ASA 705;[1]

(c)                A substitute for reporting in accordance with ASA 570[2] when a material uncertainty exists relating to events or conditions that may cast significant doubt on an entity's ability to continue as a going concern; or

(d)                A separate opinion on individual matters.  (Ref: Para. A5–A8)

5.                   This Auditing Standard applies to audits of general purpose financial reports of listed entities and circumstances when the auditor otherwise decides to communicate key audit matters in the auditor's report.  This Auditing Standard also applies when the auditor is required by law or regulation to communicate key audit matters in the auditor's report.[3]  However, ASA 705 prohibits the auditor from communicating key audit matters when the auditor disclaims an opinion on the financial report, unless such reporting is required by law or regulation.[4]

Aus 5.1 Key audit matters are not required to be communicated in auditor's reports on condensed financial reports prepared in accordance with AASB 134 Interim Financial Reporting.

Effective Date

6.                   [Deleted by the AUASB.  Refer Aus 0.3]

Objectives

7.                   The objectives of the auditor are to determine key audit matters and, having formed an opinion on the financial report, communicate those matters by describing them in the auditor's report.

Definition

8.                   For the purposes of this Auditing Standard, the following term has the meaning attributed below:

    Key audit matters—Those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial report of the current period.  Key audit matters are selected from matters communicated with those charged with governance.

Requirements

Determining Key Audit Matters

9.                   The auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit.  In making this determination, the auditor shall take into account the following: (Ref: Para. A9–A18)

(a)                Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with ASA 315.[5]  (Ref: Para. A19–A22)

(b)                Significant auditor judgements relating to areas in the financial report that involved significant management judgement, including accounting estimates that are subject to a high degree of estimation uncertainty.  (Ref: Para. A23–A24)

(c)                The effect on the audit of significant events or transactions that occurred during the period.  (Ref: Para. A25–A26)

10.               The auditor shall determine which of the matters determined in accordance with paragraph 9 of this Auditing Standard were of most significance in the audit of the financial report of the current period and therefore are the key audit matters.  (Ref: Para. A9–A11, A27–A30)

Communicating Key Audit Matters

11.               The auditor shall describe each key audit matter, using an appropriate subheading, in a separate section of the auditor's report