impact on auditors report

Question 1

new computer system, real time tracking of deliveries, as soon as package is delivered, finance system is updated for revenue and invoice generated

no deficiencies were found by team in recording of revenue

co is listed

Answer 1

-listed so KAM section is required in audit repot

-KAM are matters that, in auditor’s professional judgement, were of most significance, needed most attention, selected from matters communicated with TCWG

eg of matters in KAM are higher audit risk, higher judgmenet areas

-KAM should include risk related to accuracy and completeness of revenue due to new computer system.
-also detail why this is included in KAM, explain how the matter was addressed and overview of audit procedures adopted like TOC and Substantives