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CFA Level I · CFA Level I Exam · Introduction to Financial Statement Analysis

Compared with a standard unqualified auditor's report, an auditor's report that includes a key audit matters section most likely:

A key audit matters section describes the matters that were of most significance in the auditor's judgment during the current-period audit. It supplements the opinion rather than replacing it, and it gives no assurance on strategy. It gives analysts insight into risky areas such as estimates.

  1. Adescribes matters of most significance in the audit of the current period.Correct
  2. Breplaces the audit opinion with a list of the auditor's concerns.
  3. Cprovides assurance on the effectiveness of the company's strategy.

Explanation

Key audit matters are those of most significance in the auditor's judgment in auditing the current period's statements, and they are communicated in addition to the opinion. They do not replace the opinion, and the auditor does not give assurance on corporate strategy.

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