Which of the Following Statements Regarding Key Audit Matters (KAMs)is

question 63

Multiple Choice

Which of the following statements regarding key audit matters (KAMs) is not correct?

• A)The auditor issues a separate opinion on identified KAMs.
• B)The order of presentation of individual KAMs is a matter of professional judgment.
• C)KAMs are a subset of matters communicated to those charged with corporate governance.
• D)The nature of a KAM will vary according to the client's industry.

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Definitions:

Payoff Table

A tabular representation of the outcomes of different decisions or strategies under various states of nature or scenarios.

Expected Opportunity Loss

The anticipated loss for not choosing the best possible option or course of action in decision-making processes.

Expected Monetary Value

A statistical technique in decision making used to calculate the average outcome when the future includes scenarios that may or may not happen.

Expected Value

The long-run average value of repetitions of the experiment it represents, often considered as the mean in probability.