Key Audit Matters

Factors to consider

For a listed company a key audit matters section will be required in the
audit report.

Audit partner would have considered whether the KAM was

communicated to those charged with governance as KAM are usually
selected from the matters that were communicated to those charged
with governance.

Audit partner would also have had considered whether the issue was
an area of higher assessed risk of material misstatement or a significant
risk as it is an accounting estimate the level of judgement involved.

The audit partner would also have considered whether in their

professional judgement the matters regarding were of most
significance during the audit therefore requiring significant auditor
attention.
Contents of KAM section

KAM section of the audit report should provide a description of the

issue.

It should detail why this issue was of significance during the audit. It
should include a reference to the audit risk and the level of judgement
required in making the assessment.

It should also explain how the matter was addressed in the audit and
the auditor should provide a brief overview of the audit procedures
adopted as well as making a reference to any related disclosures.