MNP Comment Letter - Reporting on Audited Financial Statements: Special Considerations Exposure Draft (International)

Category: Assurance

MNP Comment Letter - Reporting on Audited Financial Statements: Special Considerations Exposure Draft (International)



We understand that the following discussion is more critical for general purpose financial statements as the inclusion of KAMs in ISA 805 and ISA 800 reports is only required when obligatory by law. However, we do not agree that the introduction of KAMs will enhance the usefulness of the auditor’s reports issued in accordance with ISA 800 and ISA 805. By introducing KAMs there is a risk of overreliance on those matters by readers. Readers may ignore other aspects of a company’s financial statements when making investment related decisions. In addition, there is a risk that the inclusion of KAMs may be viewed by users of the financial statements as, essentially, a “soft qualification”

ISA 800 and 805 Auditor Report Amendment IAASB Comment Letter Final

Contact a member of MNP's Financial Reporting Team

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.