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Basis for The “Basis for Opinion” The “Basis for Opinion”
Opinion section is included for all section is not included for
types of auditor’s opinions all types of
including the unmodified
opinion. auditor’s opinions but for
modified opinions only.
“Key Audit ISA 701 (new) is a new standard ISA 701 (new) is a new standard
Matters that is effective for audits
of AFS for periods ending on that is effective for audits
of AFS for periods ending on
or after 15 December 2016. or after 15 December 2016. Key
audit matters were not
specifically required to be
The audit shall include a reported on in a separate
separate section in the section of the audit report.
auditor’s report under
Prominence to the
communicated information and
Responsibilit This section has now been This section was positioned
ies for positioned far below on the at the top of the audit report
Financial audit report, below just below the“Introductory”
Statements: the“Opinion” section in order section, before the“Opinion”
to add value to the users of section.
financial statements.
Auditor’s This section has now been This section was positioned
Responsibilit positioned within the body of below the“Management’s
ies: the audit report, far below Responsibility” section just
the “Opinion” section in before the “Opinion”
order to add value to the users section.The location of the
of financial statements. auditor’s responsibilities
was only within the body of the
audit report
According to ISA 700
(revised) par 41, the
report.
This section shall explicitly
state: ISA 701 (new) is a new
standard that
(a) The objectives of the
auditor; is effective for audits of AFS
for periods ending on or after
(b) That reasonable assurance 15 December 2016. Key audit
is a high level assurance; matters were not specifically
(c) That misstatements can required to be reported on in
arises from fraud or error and this section.
describe that they are
considered material. Provide
a definition or description
of materiality.
governance.
Name of the Unlike in the old ISA 700 The name of the engagement
Engagement (old), the name of the
Partner (for engagement partner shall be partner was not specifically
listed explicitly included in the
company only) audit report for listed required to be included in the
entities unless there is a audit report. Signature and
significant personal name of the firm alone was
security threat to the sufficient.
engagement partner.
Signature and name of the firm
alone is not sufficient.
Date of the The date of the report is The date of the report is
report important because that is the important because that is the
date when the auditor’s date when the auditor’s
responsibility for responsibility for
subsequent events ends. subsequent events ends.
DIFFERENCES BETWEEN ISA 570 (REVISED) AND ISA 570 (OLD) – GOING CONCERN
(ISA 570)
(Illustration Example
1) Note that the entity
has to disclose in this
paragraph that a
Material uncertainty
exists.
(Illustration Example
3).Note that the entity
has to disclose in the