Key audit matters (KAMs) are the most significant risks in the audit of financial statements. They have the biggest impact on overall strategy and the allocation of resources in an audit. KAMs are communicated by the auditor in their report. Reporting on KAMs opens the way for more transparent and meaningful audits, this benefits users and stakeholders, at large.
For the second year in a row, Accountancy Europe has performed a survey on the auditor’s reporting of KAMs in the European banking sector. The survey aims to examine the additional value that KAMs reporting has for the auditor’s report and to see if there are any emerging trends or significant changes from the previous year.
Our survey provides insights and conclusions on the auditor’s reporting of KAMs for more than 60 European banks, which own the vast majority of the assets in the European banking sector.
This year, we focus on the number and types of KAMs that are being reported. Even though it is still early days of reporting on KAMs, the key risks in the banking sector seem to be relatively consistent across Europe.