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:

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate sales revenue.

Fair Value

An estimate of the price at which an asset would change hands between a willing buyer and seller in an arm's length transaction, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Accumulated Depreciation

Represents the total depreciation of a fixed asset over its life up to the current date.

Exchange of Assets

Transactions where one asset is traded for another, typically without the use of cash, within the scope of business activities.