ISA (NZ) 701 Communicating Key Audit Matters in the Independent Auditor’s Report

  • Auditing

Deals with the auditor’s responsibility to communicate key audit matters (KAM) in the auditor’s report.

In New Zealand, the requirement to report KAM applies to auditors’ reports for all FMC reporting entities considered to have a higher level of public accountability.

There is however a transitional provision that defers the mandatory reporting of KAM for FMC reporting entities considered to have a higher level of public accountability that are not listed issuers until December 2018.

It also applies when the auditor is required by law or regulation to communicate KAM for other entities or when the auditor decides to communicate KAM on a voluntary basis.


Effective for audits of financial statements for periods as indicated. Also applies to subsequent annual reporting periods until that standard is superseded by a new/amended/revised standard.

  • ISA (NZ) 701 – Periods ending on or after
    15 Dec 2016

    Date of issue: Oct 2015 Date compiled: 1 Oct 2015
    Additional material: Explanation for decisions made

Amendments

  • Conforming and Consequential Amendments arising from ISA (NZ) 540 (Revised) – Periods beginning on or after
    15 Dec 2019 (early adoption permitted)

    Date of issue: Nov 2018

New Version Not Yet Mandatory

  • ISA (NZ) 701 – Periods beginning on or after
    15 Dec 2019

    Date of issue: Nov 2018 Date compiled: 8 Nov 2018