In short
Key audit matters are the matters that, in the auditor's professional judgment, were of most significance in the audit. In a private-company audit, the auditor communicates them in the report only when engaged to do so.
Key takeaways
- They are selected from matters communicated to those charged with governance.
- They don't modify the opinion and aren't a substitute for a modified opinion.
- In public company audits, the related requirement is to report critical audit matters.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In an audit of a nonissuer, when are key audit matters (KAMs) communicated in the auditor's report?