Key Audit Matters and Emphasis of Matters

KAMs are general matters of importance that were dealt with during the audit. Eg if the valuation of inventory was difficult, that would be mentioned there.

EoMs are a red flag telling shareholders not to overlook something important in the FS – usually to go an look at a note. For example, the note might explain that the company had just received a law suit but that it was too early to make any evaluation.