14.7//adt comp+KAM

Question 1

components of adt report

Answer 1

1.governed by CAS 700

2. Adtr should consider whether CAS 701 is appropriate.
3. CAS 701 is about Key Audit Matters. it is not mandatory unless required by regulation or law
4. Now CAS 701 will mandate entities reporting to TSX to include KAM in their FS

Question 2

KAM

Answer 2

1.relevant matters that were considered according to the adtr’s professional judgement, significant during the adt of the FS of the current period e.g areas go higher risk of MM

2. KAM should be specific to the entity
3. CAS 701 includes a judgement based decision making framework to help adtr to determine KAM
4. number of KAM reported depends on the nature and complexity of the entity

5.a description of KAM ,inclusing a reference to the related disclosures is required by CAS 701

6. If there is need for KAM, it should address:
   -reason why it is considered KAM (matter is considered significant in the adt)
   -how was the matter addressed in the adt

Question 3

list components of adt reports

Answer 3

1. title
2. addressee
3. opinion para
4. basis of opinion
5. KAM
6. Other INFORMATION
7. mgt resposnisbilities
8. adtr responsibilities
   9.other reporting responsibilities
   10.name of eggmnt partner for listed entities
   11.Date pf adt report
9. adtr address

Question 4

3. opinion para

Answer 4

1. includes the adtr opinion Whether the FS is fair and prepared in accordance with the applicable reporting framework and in material respect
2. state the entities whose FS has been adted
3. the components which make the FS e.g I/S and SOFP

4.SUMMARY of accounting policies and explanatory notes

5. states FS has been adted
6. date and period covered by FS

Question 5

4.basis of opinion

Answer 5

1. states that adt was conducted in accordance to CaNADIAN GENERALLY ACCeptable adting stds

2.refers to the section abt mgt responsibility

3. affirmative statements abt the adtrs independence and ethical responsibility
4. states that opinion is based on the appropriate sufficient evidence obtained

Question 6

6. other info

Answer 6

1. annual report

2, mgt and adtr responsibility for other information

3. adtr conclusion abt whether other info is consistent with the knowledge obtained abt entity and with adit conducted

Question 7

7. mgt resposnsibilities

Answer 7

1. designing and putting in place internal control to help prepare and present FS fairly
2. going concern assmnt

Question 8

8. adtr responsibilities

Answer 8

1. obtain reasonable assurance that FS prepare and presented fairly in accordance with applicable reporting framework and express an opinion accordingly
2. states that reasonable assurance is the highest level of assurance provided and it is no guarantee that FS free from MM
3. states that misstatement can arise from error or fraud

4.states that adtr exercises professional judgement and maintain professional scepticism throat the adt

Question 9

special reporting considerations to going concern and adtor reporting

Answer 9

1. adtr and mgt responsibilities for going concern
2. separate section for the heading ‘Material Uncertainty related to going concern” to draw attention of users about the relevant going concern note in the FS. If note is adequately disclosed, then unmodified opinion is issued
3. a new requirement to challenge the adequacy of the applicable financial reporting framework when events are identified casting significant doubt of the entity ability to operate as a going concern. if there is DOUBT abt going concern, issue is treated in KAM. if this not disclosed despite having close call, adtr will issue modified opinion