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CS Professional · Compliance Management, Audit and Due Diligence · Audit Engagement

Iyer & Partners audits Sundaram Pharma Ltd. The engagement letter does not mention key audit matters, and the auditor is not required to communicate them. The auditor wishes to retain the ability to communicate KAMs voluntarily, in a jurisdiction where a reference may be necessary for this. What does SA 210 say about this?

SA 210 says that when the auditor is not required to communicate key audit matters, it may be helpful to refer to the possibility in the engagement terms, and in certain jurisdictions it may be necessary to include that reference in order to retain the ability to do so.

  1. AReferring to the possibility of communicating KAMs in the terms of engagement is prohibited
  2. BA reference to the possibility of communicating KAMs may be helpful and, in certain jurisdictions, necessary to retain that abilityCorrect
  3. CThe auditor must always obtain Board approval for KAMs by a special resolution
  4. DKAMs can be communicated only if the fee is increased

Explanation

Where the auditor is not required to communicate KAMs, SA 210 says it may be helpful to refer to the possibility in the terms of engagement, and in certain jurisdictions it may be necessary to include such reference to retain the ability to do so. It is not prohibited, and no resolution or fee change is mentioned.

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