Subject The article analyzes the reasons why key audit matters are included into auditor's reports. Objectives The research identifies the most common aspects of auditor's reports including the paragraph of key audit matters. Methods While preparing the article, we studied 104 auditor's reports following the audit of financial statements for 2016 as compiled by major Russian companies from various sectors. Results Having summarized the first time adoption practice of ISA 701 in Russia, we conclude that auditing firms applied ISA 701 in the analyzable period to items of accounting and financial reporting, which are exposed to the most substantial misstatement risk due to the high percentage of respective items, uncertainty. Relevant estimates require biased professional judgments of in-house and external specialists and experts. Conclusions and Relevance ISA 701 is first of all applicable to audit of financial statements prepared by publicly important, public joint-stock companies, whose securities were accepted for organized market. Having analyzed the substantive part of Key Audit Matters in respective audit reports, we found out that there are many audit matters of the highest significance. Revenue recognition, measurement of impairment of fixed assets, valuation and impairment of financial assets and inventories are the most frequent matters.
Keywords: auditing, international standards on auditing, key audit matters
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