R & J Associates, Chartered Accountants, are the statutory auditors of Trikon Ltd., a listed manufacturing company. During the audit for F.Y.…

The auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit. In making this determination, the auditor shall take into account the following: Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with SA 315.Significant auditor judgments relating to areas in the financial statements that involved significant management judgment, including accounting estimates that have been identified as having high estimation uncertainty.The effect on the audit of significant events or transactions that occurred during the period. The auditor shall determine which of the matters were of most significance in the audit of the financial statements of the current period and therefore are the key audit matters. However, the auditor shall describe each key audit matter in the auditor's report unless in extremely rare circumstances, the auditor determines that the matter should not be communicated in the auditor's report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. This shall not apply if the entity has publicly disclosed information about the matter. Accordingly, the judgment not to communicate a key audit matter is appropriate only in cases when the adverse consequences to the entity or the public as a result of such communication are viewed as so significant that they would reasonably be expected to outweigh the public interest benefits of communicating about the matter. The determination not to communicate a key audit matter takes into account the facts and circumstances related to the matter. Communication with management and those charged with governance helps the auditor understand management's views about the significance of the adverse consequences that may arise as a result of communicating about a matter.