Document ID: chunk:federal_register_of_legislation:F2023C01136:reg:9:p4
Version: federal_register_of_legislation:F2023C01136
Segment Type: reg
Provision Reference: reg 9 (pt 4/24)
Character Range: 15036–17966

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 under the heading "Key Audit Matters," unless the circumstances in paragraphs 14 or 15 of this Auditing Standard apply.  The introductory language in this section of the auditor's report shall state that:

(a)                Key audit matters are those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial report [of the current period]; and

(b)                These matters were addressed in the context of the audit of the financial report as a whole, and in forming the auditor's opinion thereon, and the auditor does not provide a separate opinion on these matters.  (Ref: Para. A31–A33)

Key Audit Matters Not a Substitute for Expressing a Modified Opinion

12.               The auditor shall not communicate a matter in the Key Audit Matters section of the auditor's report when the auditor would be required to modify the opinion in accordance with ASA 705 as a result of the matter.  (Ref: Para. A5)

Descriptions of Individual Key Audit Matters

13.               The description of each key audit matter in the Key Audit Matters section of the auditor's report shall include a reference to the related disclosure(s), if any, in the financial report and shall address: (Ref: Para. A34–A41)

(a)                Why the matter was considered to be one of most significance in the audit and therefore determined to be a key audit matter; and (Ref: Para. A42–A45)

(b)                How the matter was addressed in the audit.  (Ref: Para. A46–A51)

Circumstances in Which a Matter Determined to Be a Key Audit Matter Is Not Communicated in the Auditor's Report

14.               The auditor shall describe each key audit matter in the auditor's report unless:
 (Ref: Para. A53–A56)

(a)                Law or regulation precludes public disclosure about the matter; or (Ref: Para. A52)

(b)                In extremely rare circumstances, the auditor determines that the matter should not be communicated in the auditor's report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.  This shall not apply if the entity has publicly disclosed information about the matter.

Interaction between Descriptions of Key Audit Matters and Other Elements Required to Be Included in the Auditor's Report

15.               A matter giving rise to a modified opinion in accordance with ASA 705, or a material uncertainty related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern in accordance with ASA 570, are by their nature key audit matters.  However,