Document ID: chunk:federal_register_of_legislation:F2023C01136:reg:9:p14
Version: federal_register_of_legislation:F2023C01136
Segment Type: reg
Provision Reference: reg 9 (pt 14/24)
Character Range: 42624–45469

of professional judgement.  The number of key audit matters to be included in the auditor's report may be affected by the size and complexity of the entity, the nature of its business and environment, and the facts and circumstances of the audit engagement.  In general, the greater the number of matters initially determined to be key audit matters, the more the auditor may need to reconsider whether each of these matters meets the definition of a key audit matter.  Lengthy lists of key audit matters may be contrary to the notion of such matters being those of most significance in the audit.

Communicating Key Audit Matters

Separate Key Audit Matters Section in the Auditor's Report (Ref: Para. 11)

A31.         Placing the separate Key Audit Matters section in close proximity to the auditor's opinion may give prominence to such information and acknowledge the perceived value of engagement specific information to intended users.

A32.         The order of presentation of individual matters within the Key Audit Matters section is a matter of professional judgement.  For example, such information may be organised in order of relative importance, based on the auditor's judgement, or may correspond to the manner in which matters are disclosed in the financial report.  The requirement in paragraph 11 to include subheadings is intended to further differentiate the matters.

A33.         When comparative financial information is presented, the introductory language of the Key Audit Matters section is tailored to draw attention to the fact that the key audit matters described relate to only the audit of the financial report of the current period, and may include reference to the specific period covered by that financial report (e.g., "for the year ended 30 June 20X1").

Descriptions of Individual Key Audit Matters (Ref: Para. 13)

A34.         The adequacy of the description of a key audit matter is a matter of professional judgement.  The description of a key audit matter is intended to provide a succinct and balanced explanation to enable intended users to understand why the matter was one of most significance in the audit and how the matter was addressed in the audit.  Limiting the use of highly technical auditing terms also helps to enable intended users who do not have a reasonable knowledge of auditing to understand the basis for the auditor's focus on particular matters during the audit.  The nature and extent of information provided by the auditor is intended to be balanced in the context of the responsibilities of the respective parties (i.e., for the auditor to provide useful information in a concise and understandable form, while not inappropriately being the provider of original information about the entity).

A35.         Original information is any information about the entity that has not