Survey Dives into KAMs in the Banking Sector
An Accountancy Europe survey of Key Audit Matters (KAMs) reporting has found a slight dip in the number of KAMs reported by European banks – although numbers are still significantly higher than the average for all industries.
KAMs became mandatory with the new and revised auditor reporting standards which came into effect for audits of financial statements from late 2016. The standard was designed to improve the transparency and insight of audit reports.
Key Audit Matters are the matters that are considered by the auditor to be of most significance in the audit. The description of the KAM includes a cross reference to the related disclosure in the financial statement (where possible).
The Accountancy Europe survey, designed to benchmark and compare data from the banking sector year on year, found that the main recurring KAMs were related to financial instruments, likely due to the new standard IFRS 9.
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