You are drafting the auditor's report for Happytime Trading. You understand that the report will need to reflect the requirements of ISA 701 Communicating Key Audit Matters in the Independent Auditor's Report. According to ISA 701, which of the following should be included in the 'Key Audit Matters' paragraph in the auditor's report?
A) Matters which required significant auditor attention
B) Matters which result in a modification to the audit opinion
C) All matters which were communicated to those charged with governance
D) All matters which are considered to be material to the financial statements

Question

Quizplus · Accepted Answer

Key Audit Matters are those matters that, in the auditor's professional judgment, were of most significance in the audit of the financial statements and required significant auditor attention.

You Are Drafting the Auditor's Report for Happytime Trading