Key audit matters

The course notes chapter on the External Audit Report has an explanation of Key Audit Matters and the auditor’s responsibilities for reporting these matters

In addition, this recent article is very helpful!

https://www.accaglobal.com/za/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/auditor-report.html

I’m not going to get drawn into any discussion about which is the better material – different providers have material that suits different students so it comes down to a matter of personal preference

Lisa, surely this extract from the above article is sufficient explanation

“Candidates should appreciate that when the auditor communicates matters as KAM, the intention is to provide additional information beyond that which would be included in an Emphasis of Matter paragraph. In recognition of this ISA 706 (Revised) states:

The auditor is prohibited from using an Emphasis of Matter paragraph or an Other Matter paragraph when the matter has been determined to be a KAM. To that end, the IAASB has emphasised that the use of an Emphasis of Matter paragraph is not a substitute for a description of individual KAM.

If a KAM is also determined to be fundamental to users’ understanding, the auditor may present this issue more prominently in the KAM section. Alternatively, the auditor might also include additional information in the KAM description to indicate the importance of the matter.

There may be a matter which is not determined to be a KAM, but which, in the auditor’s judgement is fundamental to users’ understanding and for which an Emphasis of Matter paragraph may be considered necessary.”