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Reporting improves with KAM disclosures, study says

Tammy Whitehouse | March 13, 2018

After a year of reporting “key audit matters” to investors in audit reports abroad, financial reporting has improved, says a study by a global accounting group.

The Association of Chartered Certified Accountants studied 560 audit reports across 11 countries that sported the new KAM disclosures as required by the International Auditing and Assurance Standards Board beginning in 2016. The ACCA report concludes the disclosures not only provide better information to investors, they also have encouraged improvements throughout the financial reporting chain.

The new KAM disclosure under the IAASB rules requires auditors to list in their audit reports the areas of the audit that involved the most risk. Auditors also must explain the audit approach that was taken in those areas.

In the United States, the Public Company Accounting Oversight Board... To get the full story, subscribe now.