For financial periods ending after 15 December 2016 the auditor has a responsibility to communicate key audit matters (KAM) in the audit report.
This disclosure for listed companies has now been a requirement for a year, so all companies have at least one set of accounts with KAMs specified.
OM analysed 290 KAM disclosures for ASX 300 companies during 2017 to observe trends and identify any companies where the audit matter may provide insight for investors.
KAMs can provide users of financial statements with hints as to areas of disclosure that may warrant further investigation or seem otherwise innocuously disclosed. Examples include:
1. Austal (ASB)
2. Graincorp (GNC)
3. Steadfast (SDF)
4. Sky Network Television (SKT)
5. Blue Sky Alternatives (BLA)
6. Domino’s Pizza (DMP)
7. Fairfax (FXJ) / Nine Entertainment (NEC)
8. Myer Limited (MYR)
The report can be downloaded by clicking on the following link:Key Audit Matters Report