Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Auditor's reports

Which of the following is NOT a factor the auditor must take into account under ISA 701 when determining matters that required significant auditor attention?

The audit fee is not a consideration. ISA 701 requires the auditor to consider areas of higher assessed risk, significant auditor judgments in areas of management judgment, and the effect of significant events or transactions during the period.

  1. AAreas of higher assessed risk of material misstatement or significant risks
  2. BSignificant auditor judgments relating to areas of significant management judgment, including accounting estimates with high estimation uncertainty
  3. CThe effect on the audit of significant events or transactions during the period
  4. DThe audit fee earned from the client for the periodCorrect

Explanation

ISA 701 lists three considerations: higher assessed risk or significant risks, significant auditor judgments relating to management judgment areas, and the effect of significant events or transactions in the period. The size of the audit fee is not a factor.

Did you get it right without looking?

One question tells you little. A timed set on Auditor's reports shows your real accuracy, how long you take and where you lose marks.

Practise Auditor's reportsFree diagnostic mock

More Auditor's reports questions