Document ID: chunk:federal_register_of_legislation:F2023C01136:reg:9:p10
Version: federal_register_of_legislation:F2023C01136
Segment Type: reg
Provision Reference: reg 9 (pt 10/24)
Character Range: 31524–34477

to discuss, among other things, significant matters and significant judgements arising during the audit engagement with the engagement quality reviewer.[22]

Considerations in Determining Those Matters that Required Significant Auditor Attention (Ref: Para. 9)

A16.         The auditor may develop a preliminary view at the planning stage about matters that are likely to be areas of significant auditor attention in the audit and therefore may be key audit matters.  The auditor may communicate this with those charged with governance when discussing the planned scope and timing of the audit in accordance with ASA 260.  However, the auditor's determination of key audit matters is based on the results of the audit or evidence obtained throughout the audit.

A17.         Paragraph 9 includes specific required considerations in the auditor's determination of those matters that required significant auditor attention.  These considerations focus on the nature of matters communicated with those charged with governance that are often linked to matters disclosed in the financial report, and are intended to reflect areas of the audit of the financial report that may be of particular interest to intended users.  The fact that these considerations are required is not intended to imply that matters related to them are always key audit matters; rather, matters related to such specific considerations are key audit matters only if they are determined to be of most significance in the audit in accordance with paragraph 10.  As the considerations may be interrelated (e.g., matters relating to the circumstances described in paragraphs 9(b)(c) may also be identified as significant risks), the applicability of more than one of the considerations to a particular matter communicated with those charged with governance may increase the likelihood of the auditor identifying that matter as a key audit matter.

A18.         In addition to matters that relate to the specific required considerations in paragraph 9, there may be other matters communicated with those charged with governance that required significant auditor attention and that therefore may be determined to be key audit matters in accordance with paragraph 10.  Such matters may include, for example, matters relevant to the audit that was performed that may not be required to be disclosed in the financial report.  For example, the implementation of a new IT system (or significant changes to an existing IT system) during the period may be an area of significant auditor attention, in particular if such a change had a significant effect on the auditor's overall audit strategy or related to a significant risk (e.g., changes to a system affecting revenue recognition).

Areas of Higher Assessed Risk of Material Misstatement, or Significant Risks Identified in Accordance with ASA 315 (Ref: Para. 9(a))

A19.         ASA 260 requires the auditor to communicate with those charged