![]() ![]() For reference, below we have included an example of a template audit report with the changes identified. We recommend having discussions with users of your financial statements to make sure they are aware of the changes coming to the audit report. It is important for users to understand that the reference to going concern does not automatically indicate that substantial doubt exists, and the reports should be read carefully. This is a significant change because all reports will now include language about going concern, where previously it was only required if there was substantial doubt. SAS 134 now requires a statement in the Responsibilities of Management section on the evaluation of conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. We expect very few non-public business entities will request to have KAMs reported, as they would prefer to keep those qualitative matters out of the audit report that may be shared externally. The decision to include KAMs in the auditor’s report is at the option of management. KAMs are generally selected from matters communicated with those charged with governance. KAMs are those matters that, in the auditor’s professional judgment, were of most significance in the audit of financial statements of the current period. ![]() SAS 134 does NOT require the reporting of KAMs in the auditor’s report, but provides an option for these to be included.
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