Ny revisionspåtegning: En empirisk analyse af tilføjelsen af Key Account Matters

Sieu David Yung Mac

Student thesis: Master thesis


Since the awakening of the financial crisis back in 2008 many users of the financial statements, and particularly the Auditor’s Report, have questioned the value of the audit performed by the auditors. The ”International Auditing and Assurance Standards Board” (IAASB) - an independent auditing standard-setting body that serves the public’s interest by setting high-quality international standards for auditing, will try to meet user demands for a more understandable and informative Auditor’s Report. They have launched several research programmes and studies since 2009, to get an insight as to what the users are requesting, and by doing this formed a new proposal of improving the Auditor’s Report. One of the most innovative changes is the implementation of “Key Audit Matters”. This thesis deals with the new term Key Audit Matters in the new Auditor’s Report. Based on the commentaries the IAASB have received from a range of respondents, covering the world’s top professional auditors and investors, this thesis will examine their attitudes by doing an empirical study. This method will give a true and fair view of the capacity of “Key Audit Matters”, as well as how its implementation can meet user expectations of a more valuable Auditor’s Report. Results of the empirical study showed that a huge number of the respondents are supporting this proposal, and believe it will be an improvement from the current “pass/fall” model. The aim of Key Audit Matters is to give auditors a tool, which they can use and provide users of the Auditor´s Report with more insight in the matters that are “most significant” under the audit. Since Key Audit Matters always are selected from matters communicated with those charged with governance, it can provide more information about the entity and give users a better understanding of the audit and more transparency of the financial statements. However, there are some concerns about the definition of Key Audit Matters, which are highly based on auditor’s subjective judgments. I believe users of the Auditor’s Report will find it challenging to understand why a reported matter is a Key Audit Matters, when it is in the user’s mind-set just an ordinary matter. Another concern is that the description of each Key Audit Matters will be too difficult to understand for some users, since it is requiring a strong professional understanding to get the full value of Key Audit Matters. Therefore, this thesis suggests that the definition of Key Audit Matters can be improved, and the descriptions of each Key Audit Matter can be simplified and understandable for all users.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages174