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CAS 701, Communicating Key Audit Matters in the Independent Auditor's Report

Ef­fec­tive date:

Effective for audits of financial statements for periods ending on or after December 15, 2018. Earlier application is permitted.


CAS 701 deals with the auditor's responsibility to communicate key audit matters in the auditor's report. It is intended to address both the auditor's judgment as to what to communicate in the auditor's report and the form and content of such communication.

The purpose of communicating key audit matters is to enhance the communicative value of the auditor's report by providing greater transparency about the audit that was performed. Communicating key audit matters provides additional information to intended users of the financial statements to assist them in understanding those matters that, in the auditor's professional judgment, were of most significance in the audit of the financial statements of the current period.

CAS 701 applies when the auditor communicates key audit matters as required by CAS 700, Forming an Opinion and Reporting on Financial Statements. CAS 700 only requires the auditor to communicate key audit matters:

  • when the auditor is required to do so by law or regulation; or
  • when the auditor decides to do so.

His­tory of CAS 701

There have been no amend­ments to CAS 701 since its date of is­sue.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.