11 The auditor should not communicate a matter in the "Key Audit Mat- ters" section of the auditor's report when the auditor would be required to mod- ify the opinion in accordance with section 705 as a result of the matter
(Ref: ,par A4)Such exemption should always be applied with extreme care by the auditor
The auditor is not required to provide an update to Key Audit Matters highlighted in the auditors’ report in the previous accounting period
Internal audits provide many benefits to an organization, giving management and leadership another lens through which to look at the organization. While external compliance audits are essential, they often have a specific scope and aim — PCI DSS, for example, zooms in on credit cardholder data. Internal audits have the benefit of a looser scope, al.
The essential difference between internal audits and compliance audits, sometimes referred to as external audits, is who performs the audit. Internal audits, as the name indicates, are performed by internal auditors who are employed by the business. Compliance audits are performed by independent, third-party, or external auditors, often certified i.
The only matters determined to be key audit matters are those communicated in accordance with paragraph
14[Except for the matter described in the Basis for Qualified Opinion section or Going Concern section,] We have determined that there are no [other] key audit matters to communicate in our report
paragraph 11 of ISA 701
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters
An internal audit is a fundamentally independent function that evaluates an organization’s operations, internal controls, and risk management processes with the aim of improving the organization’s effectiveness and efficiency. Internal auditors will conduct interviews, inspect evidence, test controls, and read policies to understand the environment.
