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SA 700 (Revised) - the audit report should include Key Audit Matters (KAM) for:
AListed entities and other entities where required by law/regulation or determined by the auditor (per SA 701)
BAll audits regardless
COnly government audits
DOnly large private companies
Answer & Solution
Correct answer: A. Listed entities and other entities where required by law/regulation or determined by the auditor (per SA 701)
1. SA 701 specifically requires KAM for listed entity audits.
2. KAM may also be communicated for other entities where required or voluntarily.
3. KAM = matters of most significance in the auditor's judgement during the audit of the current period.
_Source: ICAI BoS CA Final Paper 3, Ch 6 "Standards on Auditing and Professional Ethics"_
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