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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.

Overview

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.

Following the amendments to paragraph C6 in December 2019, CAS 701 is effective for audits of financial statements of:

  •  Entities listed on the TSX, excluding listed entities required to comply with NI 81-106, for periods ending on or after December 15, 2020.
  •  Other listed entities, excluding listed entities required to comply with NI 81-106, for periods ending on or after December 15, 2022.
  •  All entities for periods ending on or after December 15, 2018 when:
    1. The auditor decides to communicate key audit matters in the auditor's report; or
    2. The auditor is required by law or regulation to communicate key audit matters in the auditor's report.

 

His­tory of CAS 701

Date

De­vel­op­ment

Com­ments

De­cem­ber 2018

Para­graph C6 of CAS 701 was re­vised

to re­quire com­mu­ni­ca­tion of key au­dit mat­ters per CAS 700 for au­dits of com­plete sets of gen­eral pur­pose fi­nan­cial state­ments of en­ti­ties listed on the Toronto Stock Ex­change, other than en­ti­ties re­quired to com­ply with Na­tional In­stru­ment 81-106, In­vest­ment Fund Con­tin­u­ous Dis­clo­sure.

The amend­ment is af­fec­tive for au­dits of fi­nan­cial state­ments for pe­ri­ods end­ing on or af­ter De­cem­ber 15, 2020. Ear­lier ap­pli­ca­tion is per­mit­ted.

December 2019

Para­graph C6 of CAS 701 was re­vised

to re­quire com­mu­ni­ca­tion of key au­dit mat­ters per CAS 700 for au­dits of com­plete sets of gen­eral pur­pose fi­nan­cial state­ments of all listed en­ti­ties, other than en­ti­ties re­quired to com­ply with Na­tional In­stru­ment 81-106, In­vest­ment Fund Con­tin­u­ous Dis­clo­sure.

The amend­ment in respect of key audit matters reporting by listed entities other than those listed on the TSX is ef­fec­tive for au­dits of fi­nan­cial state­ments for pe­ri­ods end­ing on or af­ter De­cem­ber 15, 2022. Ear­lier ap­pli­ca­tion is per­mit­ted.

Note: The above sum­mary does not in­clude de­tails of con­se­quen­tial amend­ments made as the re­sult of other pro­jects.

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

Amendments under consideration

  • None

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