Our third auditor's report snapshot, provides insights and observations on Key Audit Matters from 56 entities in the ASX 500 with 31 December 2016 year ends. Key Audit Matters (KAMs) are those matters that required significant auditor attention in performing the audit, and are communicated in auditor’s reports of listed entities.
Our analysis highlights the top four KAM topics, representing over 40 percent of all KAMs communicated. It provides industry specific observations and deep-dive analysis, sharing patterns you may not have expected. Read the full report for our full analysis.
Including Key Audit Matters in audit reports of listed entities results from a new auditing standard, adopted for 31 December 2016 year-ends and onwards. It is the biggest change auditors have seen to the auditing standards since the introduction of the clarity standards in 2004. The platform for change was to provide insights to shareholders on the performance of the audit, previously only viewed by those in the boardroom. We analysed those entities in the ASX 500 with 31 December 2016 year-ends.