Rhlmoharkarrhlmoharkar asked 10 months ago
1 Answers
RaviRavi Staff answered 10 months ago

KAM para includes points which were most significant in course of audit generally related to significant risk / significant judgement / significant transaction. Where auditor has spent lot of time and energy and which are critical during course of audit.
if any modification fulfills above criteria it may become KAM point, in such case complete description will be given in Basis of Opinion para, KAm will just have reference.
It is not necessary modification will be always part of KAM, for example company’s audit report may have a modification which gets repeated each year like company follows 20% residual value for all assets which may not be acceptable to auditor and he may modify each year. Now this matter being settled and doesn’t need  any big efforts, is point of modification but not part of KAM.
i hope you got the point, you can comment below in answer section.