One significant change in auditor’s reporting standard is the implementation of SLAuS 701 (communicating key audit matters in the auditors report) where auditors are required to report key audit matters in their auditors report which require significant auditor attention.
“KAMs also enhance the communicative value of the auditor's report by providing transparency about the audit.“ – Suren Rajakarier
As the principal communication between the auditor and users of audited financial statements, the new auditor’s report is intended to be more informative and more transparent. The purpose of this publication is to provide an understanding of the Sri Lankan experience in the first year of reporting of key audit matters (KAMs). In order to provide better insight on the conduct of the audit, the audit reports may have to be more granular and KAMs should show a linkage of the impact on the entity arising from wider macro-economic factors.
The report also provides a brief outlook of our automated, evolving and dynamic audit tool - KPMG Clara.