Audit Quality
Key Audit Matters Frequency
Most frequently reported key audit matters in audit reports of larger public entities and listed SOEs.
Why key audit matters matter
Key audit matters (KAMs) are the issues that, in the auditor's professional judgement, were of most significance in the current audit, reported under ISA 701 in the audit reports of larger public entities and listed SOEs. Their frequency across entities reveals the systemic risk themes the audit profession is most concerned about. AuditPro Core aggregates the most commonly reported KAMs so boards and audit committees can benchmark their own risk exposure against the sector.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Reports with KAMs
118
larger entities
Avg KAMs per report
2.7
Top KAM theme
Impairment
34% of reports
New KAM themes
4
KAM theme distribution
KAM frequency by sector
| Sector | Reports | Most common KAM |
|---|---|---|
| Energy SOEs | 14 | Going concern |
| Water boards | 11 | Impairment of receivables |
| Development finance | 9 | Loan provisioning |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
What a KAM is
A KAM is a matter of most significance in the audit, selected from those communicated to those charged with governance. It is disclosed to give report users insight into the areas of greatest auditor focus.
Why frequency reveals systemic risk
When the same KAM recurs across many entities, such as revenue recognition or asset valuation, it signals a sector-wide risk rather than an isolated problem. This guides where assurance effort should concentrate.
KAM is not a qualification
Reporting a KAM does not modify the opinion; it highlights complexity, judgement or risk. Conflating the two leads governance bodies to misread the audit report.
Value to those charged with governance
KAMs give the audit committee a concise map of where management estimates and judgements are most exposed. They are a natural agenda for deeper oversight questioning.
How AuditPro Core Bridges the Gap
- Theme aggregation: reported KAMs are categorised and counted across entities to reveal the dominant risk themes.
- Benchmarking: an entity's KAMs are compared against sector frequency so outliers and gaps stand out.
- Traceability to source: each KAM links to the relevant audit report and underlying balance or assertion.
- Audit-ready export: the KAM profile exports for board and audit-committee risk discussions.
Key Takeaways
- KAMs flag the auditor's areas of greatest focus, not opinion modifications.
- Recurring KAMs across entities expose systemic sector risk.
- They give governance bodies a focused oversight agenda.
- Benchmark your KAM profile against the sector to spot anomalies.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.