(a) ISA 700 Forming an Opinion and Reporting on Financial Statements requires auditors to produce an auditor's report. This report should contain a number of consistent elements so that users are able to understand what the auditor's report means. Required: (i) Identify what a key audit matter (KAM) is and explain how the auditor determines and communicates KAM. (ii) Select any (5) FIVE elements of an unmodified auditor's report and for each explain why they are included.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(a) ISA 700 Forming an Opinion and Reporting on Financial Statements requires
auditors to produce an auditor’s report. This report should contain a number of
consistent elements so that users are able to understand what the auditor's report
means.
Required:
(i) Identify what a key audit matter (KAM) is and explain how the auditor
determinesand communicates KAM.
(ii) Select any (5) FIVE elements of an unmodified auditor's report and for each
explain why they are included.
Transcribed Image Text:(a) ISA 700 Forming an Opinion and Reporting on Financial Statements requires auditors to produce an auditor’s report. This report should contain a number of consistent elements so that users are able to understand what the auditor's report means. Required: (i) Identify what a key audit matter (KAM) is and explain how the auditor determinesand communicates KAM. (ii) Select any (5) FIVE elements of an unmodified auditor's report and for each explain why they are included.
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