Critical Assessment of ASA 701 in the Independent Auditor’s Report

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1AUDITING AND ASSURANCE
Executive Summary:
The current report would critically assess the auditing standard, “ASA 701
Communicating Key Audit Matters in the Independent Auditor’s Report”, from the
perspective of Amcor Energy, Bluescope Limited and Newcrest Mining. By evaluating the
annual reports, the disclosures that the organisation has made could be represented
significantly to the users of the financial statements. Since there is compliance with the ASA
701 norms on the part of the three organisations, their annual reports could be adjudged as
feasible. In addition, it denotes that there is presence of conformance to ASA 315, which is
followed on the parts of the auditors as well as the entities. Thus, the use of ASA 315 is
prevalent in the entity.

2AUDITING AND ASSURANCE
Table of Contents
1. Introduction:...........................................................................................................................3
2. Key audit matters (KAM):.....................................................................................................3
3. Ways of identifying KAM:....................................................................................................3
4. Going concern:.......................................................................................................................3
5. Cash flow concept:.................................................................................................................4
6. Assessment of the mining industry:.......................................................................................4
7. Research extent and application:............................................................................................6
8. Conclusion and recommendations:........................................................................................6
References:.................................................................................................................................8