Certifiable Risk Management & Business Continuity

Running head: AUDITING
Auditing
Name of the Student
Name of the University
Author note

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AUDITING
Executive summary
The aim of the report is to give a brief analysis of the need of communicating the key audit
matters in solving various financial crisis. the report contains the relevant auditing standard
that provide the relevant guidelines that are essential for communicating the key audit matters
in the report of the independent auditors. The report contains the details of the key audit
matters of the companies of the mining industry. The report concludes with the analysis of
the key audit matters and the requirements to highlight the key audit matters in the audit
reports.

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AUDITING
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Recommendation......................................................................................................................11
Conclusion................................................................................................................................11
Reference..................................................................................................................................12

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AUDITING
Introduction
The AUASB has realised the need of the changes in the rules of the ASA 570 and in
response to that a new auditing standard that is ASA 701 has been issued which deals with
the communication of key audit matters in the report of the independent auditors. With the
increase in number of financial crisis in the corporate sectors. In the modern days the
corporate sector is in the need of strict auditing guidelines that can prevent the occurrence of
fraud cases and solve the problem of financial crisis. In this context the need of
communicating key audit matters that are highlighted by the internal auditor has been realised
as the report of the internal auditor contain the details of the entire internal control system of
the company and that can be used to detect the area that may lead to the occurrence of any
financial crisis.
Discussion
The main purpose of the ASA 701 is to make the auditing standard issued by the
Australian regulatory body relevant with that of the provision of the international standard of
auditing. The issuance of the ASA 701 shows the commitment of the AUSAB towards
bringing an equality with the current amendments made by the international standard of
auditing in the audit reposting process. The major features of the ASA 701 are enumerated
below:
 The standard makes it mandatory for the listed companies to communicate the key
audit maters in the audit reports.
 The ASA 701 enables the auditors of the entities which are not listed to take decisions
whether it will be possible to include the key audit matters in the report of the
auditors.
 It specifies the process of determining the key audit matters these are listed below