The AAOIFI Governance and Ethics Board (AGEB) upon the recommendation of the AAOIFI Professional Auditing Standards Committee (PASC) ratified an amendment to the Guidance Note No. 01 on reporting of “KEY AUDIT MATTERS (KAM).
The Chairman of PASC Mr. Ebrahim Sidat commented that “the objective of the amendment is to allow one year deferment for application of Guidance Note No. 01 in view of numerous requests received from professional practice firms and industry desiring guidance on a uniform audit report. It is generally felt that practioners and stakeholders in industry have not been given enough time to prepare for reporting and dealing witth KAMs”.
Amendment is as follows:
“Resolution for Amendment of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI): Professional Auditing Standards Committee (PASC)
Guidance Note (GN) No. 01 “Communication of key audit matters in the independent auditor’s report”
In paragraph 11, the date appearing as “01 January 2017” shall be replaced with “01 January 2018”. ”
Additionally, in order to maintain consistency in reporting a working group (WG) comprising representatives from professional practice firms has been constituted which will mutually work to develop a uniform reporting format. The WG is expected to meet in March this year.