I just need two Key Audit Matters (KAM) of the aged care industry of Australia and a justification like why they are KAM.
This is my instruction from lecturer - By reference to the specific context of Aged Care Industry, identify and justify two (2) likely key audit matters (KAMs). Describe how the audit will address each of the KAMs identified (i.e. specific, practical responses the auditor would most likely undertake to address each KAM identified).
The financial reporting for aged care providers is governed by various regulations. The new regulation requires that the aged care providers submit their financial reports by 31 October of the following financial year in form of two reports. The two reports are designed to ensure consolidation and flexibility to the care providers. The two reports comprises of the audited General Purpose Financial Report (GPFR) and an unaudited Aged Care Financial Report (ACFR). This increases the responsibility of the auditors to review the financial reporting of the aged care providers with due care.
The key audit matters are the matters that are significantly important for the audit of the financial report of an organisation and can affect the audit report of the auditor. For the aged health care industry the two key audit matters according to Australian Audit national office (ANAO, 2018) are as follows:
However it cannot be denied that the assessment of health care required by an aged person is dependent upon the individual evaluating the condition and is subject to personal judgement. The auditor has to ensure the process followed can be accepted generally and covers all dequired areas.