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Key Audit Matters: Auditor’s report snapshot 20 September 2017

KAM: Auditor’s report snapshot – 20 September 2017

Our fourth auditor’s report snapshot provides insights and observations on Key Audit Matters from 128 entities in the ASX 200[1] with 30 June 2017 year ends. Key Audit Matters (KAMs) are those matters that required significant auditor attention in performing the audit, and are communicated in auditor’s reports of listed entities.

Carolyn Ralph

Partner, Audit, Assurance & Risk Consulting

KPMG Australia


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With 128 audit reports released, the top 5 Key Audit Matter (KAM) topics are:

Goodwill (and related CGU assets such as intangibles and PPE)

  • The most common KAM relates to carrying value assessments or impairment of goodwill and the related CGU assets such as intangibles and PPE (“Goodwill KAM”).
  • About a quarter of these KAMs report an impairment charge was booked. For some sectors this percentage is almost double. Download the full report for insights on why and industry sector observations.


  • Revenue is the next common KAM. This is no surprise given revenue is a key driver of an entities performance and shareholder value. What is surprising is a Goodwill KAM is more than twice as likely to appear than a Revenue KAM. Read the full report to understand the key drivers of Revenue KAMs and the sectors most impacted. We share sector deep-dives for Consumer & Retail and Real Estate, shedding light on unique drivers of auditor attention on revenue.


  • Taxation KAMs feature in a third of entities in the ENR, IGH and TMT sectors.
  • Have the calls for tax transparency locally and internationally given rise to additional attention by entities and their auditors? We answer some burning questions.


  • Acquisitions continue to feature high in the top KAMs for 30 June reporters but one industry sub-sector is clearly dominating. We share some interesting insights and relationships from the current uncertainty of spending patterns and the competitive acquisition market.


  • For the first time, inventory KAMs appear in the top KAMs. Each industry sector appears to have nuanced drivers of Inventory KAMs.

Download the full report to read our deep-dive analysis into the ASX 200 top industries at 30 June – Consumer & Retail and Real Estate. Are current market trends in these industries appearing in the KAMs?

Also included is an analysis of other key statistics from the audit reports we viewed, such as, audit report length – gone are the days of the historical 2 page audit report!

Lastly, we check out what the 19 early adopters from our previous snapshots are doing and if this trend will be indicative of the future of KAMs. What is clear is the audit is a dynamic service, linking what goes on at the entity impacts the audit, this unbreakable nexus. Simply, the more going on, necessitates more audit attention.


  1. Based on auditor’s reports KPMG viewed between 1 July and 19 September 2017 of ASX 200 with 30 June 2017 year ends applying exclusively the Australian auditing standards.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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