Outline the rationale behind the inclusion of KAMs in the auditor’s report. Discuss the key requirements of the auditing standard – ISA 701 with respect to the presentation of KAMs. Outline and discuss the key benefits and challenges of including KAMs in the auditor’s report. Select two entities which are listed on the Australian Securities Exchange (ASX) and examine the key audit matters reported in the auditor’s report for two consecutive periods. Discuss the KAMs reported by each entity and the changes in the KAMs over the two years.

Answer rating: 100% (QA)

Key audit matters refers to those matters that within the auditors skilled judgment were of most significance within the audit of the monetary stateme... View the full answer