Why the Auditor Considered the Matter to Be One of Most Significance in the Audit (Ref: Para.  13(a) ) …

The description of a key audit matter in the auditor’s report is intended to provide insight as to why the matter was determined to be a key audit matter.  Accordingly, the requirements in paragraphs  9–10 and the application material in paragraphs  …

The relevance of the information for intended users is a consideration for the auditor in determining what to include in the description of a key audit matter.  This may include whether the description would enable a better understanding of the audit and …

Relating a matter directly to the specific circumstances of the entity may also help to minimise the potential that such descriptions become overly standardised and less useful over time.  For example, certain matters may be determined as key audit …

The description may also make reference to the principal considerations that led the auditor, in the circumstances of the audit, to determine the matter to be one of most significance, for example: Economic conditions that affected the auditor’s ability …

How the Matter Was Addressed in the Audit (Ref: Para.  13(b) ) …

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 …