Key audit matters

The matters the auditor judged most significant in the audit, described in the audit report along with how each was addressed.

They are the auditor telling you which numbers involved the most judgement, which is precisely the list an analyst wants. Revenue recognition, impairment testing, provisioning and the valuation of unquoted investments are the usual residents.

The section is written in plain language and takes three minutes.

The judgements the auditor found hardest are the judgements most capable of being wrong.