Key Audit Matters (KAMs) per ISA 701 are reported in audit reports of:
Aall entities
Blisted (public-interest) entitiesCORRECT
Cprivate companies only
Dnon-profits only
ICANAudit & Assurance
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
ISA 701 requires KAMs in listed-entity audit reports — significant matters in the auditor's professional judgement.
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