A key audit matter is:
A) a qualified report.
B) should be specific to the entity and highlight matters that, in the auditor's professional judgement, were of most significance in the audit of the financial statements
Of the current period.
C) never permitted in Canada
D) all of the above.

Question

Quizplus · Accepted Answer

A key audit matter is a matter that, in the auditor's professional judgement, is of most significance in the audit of the financial statements of the current period. It should be specific to the entity and highlighted in the auditor's report. A qualified report is a separate matter and not related to the concept of key audit matters. Key audit matters are permitted in Canada and in many other countries. Therefore, the best choice is B.

A Key Audit Matter Is