The amount of detail to be provided in the auditor’s report to describe how a key audit matter was addressed in the audit is a matter of professional judgement. In accordance with paragraph 13(b) , the auditor may describe: Aspects of the auditor’s …

In order for intended users to understand the significance of a key audit matter in the context of the audit of the financial report as a whole, as well as the relationship between key audit matters and other elements of the auditor’s report, including …

Describing aspects of the auditor’s response or approach to a matter, in particular when the audit approach required significant tailoring to the facts and circumstances of the entity, may assist intended users in understanding unusual circumstances and …

For example, in describing the auditor’s approach to an accounting estimate that has been identified as having high estimation uncertainty, such as the valuation of complex financial instruments, the auditor may wish to highlight that the auditor employed …

There may be challenges in describing the auditor’s procedures, particularly in complex, judgemental areas of the audit.  In particular, it may be difficult to summarise the procedures performed in a succinct way that adequately communicates the nature …

As noted in paragraph  A46 , the auditor may also provide an indication of the outcome of the auditor’s response in the description of the key audit matter in the auditor’s report.  However, if this is done, care is needed to avoid the auditor giving the …

Circumstances in Which a Matter Determined to Be a Key Audit Matter Is Not Communicated in the Auditor’s Report (Ref: Para.  14 ) …

Law or regulation may preclude public disclosure by either management or the auditor about a specific matter determined to be a key audit matter.  For example, law or regulation may specifically prohibit any public communication that might prejudice an …

As indicated by paragraph  14(b) , it will be extremely rare for a matter determined to be a key audit matter not to be communicated in the auditor’s report.  This is because there is presumed to be a public interest benefit in providing greater …

The determination not to communicate a key audit matter takes into account the facts and circumstances related to the matter. Communication with management and those charged with governance helps the auditor understand management’s views about the …