Key audit matters
Also called: KAM, key audit matter
The areas of an audit that needed the auditor's most significant attention, described in the auditor's report for listed companies.
Key audit matters are not criticisms. They show where the accounts involve the biggest judgements or risks, such as revenue on long contracts or the value of goodwill, and point readers to the notes most worth reading.
Example
A key audit matter on goodwill impairment means the auditor spent significant effort testing whether an acquisition is still worth its book value.
Learn more in these lessons
- The auditor's reportWhat does an auditor's report tell investors?
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