KAMs in the audit report — what they are, what they aren't.
To address the determination of KAMs and the communication thereof in the auditor's report.
SA 701 sits in the Reporting phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 701 into practice — built from the ICAI working-paper set, free to download.
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SA 701 — Communicating Key Audit Matters — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. KAMs in the audit report — what they are, what they aren't. To address the determination of KAMs and the communication thereof in the auditor's report.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 701 in the reporting phase, that means evidencing: Determination of matters that, in the auditor's professional judgement, were of most significance; Mandatory for audits of listed entity FS; Each KAM: descriptive heading, factual statement of the matter, why it was considered a KAM, how the matter was addressed in the audit.
