Immersing in audit

  Key audit matters are those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statements of the current period. Key audit matters are selected from matters communicated with those charged with governance. The purpose of communicating key audit matters is to enhance the value of the auditor’s report by providing greater transparency about the audit that was performed. The auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit. Matters which the auditor may determine to be KAMs include: · Areas of higher risk of material misstatement, or ‘significant risks’ identified at the planning stage. · Significant judgements in relation to areas where management made judgement. · The effect of significant events or transactions. Key audit matters are described in a separate section of the auditor’s report under the head