乐鱼（Leyu）体育官网 launches a Report on Key Audit Matters (KAMs)
The auditor鈥檚 report is the key tangible deliverable of the audit process. While the audi颅tor鈥檚 opinion on the financial statements is valued, many users required the auditor鈥檚 report to be more informative and relevant. The International Board acknowledged the importance of achieving more transparency and required in the new Standard the communication of Key Audit Matters referred to as KAMs. This allows for auditor judgment to ensure that the key audit mat颅ters communicated in the auditor鈥檚 report are as entity-specific and relevant as pos颅sible.
Presenting the report to Mr. A. R. Rasiah, (Chairman -The Sri Lanka Institute of Directors) and Ms. Chaminda De Silva (Chief Executive Officer 鈥� Sri Lanka Institute of Directors) are Mr. Reyaz Mihular (Managing Partner 鈥� 乐鱼（Leyu）体育官网 Sri Lanka) and Mr. Suren Rajakarier (Head of Audit 鈥� 乐鱼（Leyu）体育官网 Sri Lanka).
As the principal communication between the auditor and users of audited financial statements, the new auditor鈥檚 report is intended to be more informative and more transparent. The 乐鱼（Leyu）体育官网 report: Key Audit Matters was released on Friday the 6th of September at the 乐鱼（Leyu）体育官网 Learning Centre in Colombo. The purpose of this publication is to provide a snapshot of the Sri Lankan experience in the first year of reporting of key audit matters (KAMs).
The report includes an analysis of the key audit matters, qualifications, emphasis of matter and material uncertainty relating to going concern included in 280 annual reports of listed entities. The report provides valuable facts on sector wise and subcategories of KAMs reported.
Presenting the report to Mr. Jagath Perera (President 鈥� Institute of Chartered Accountants of Sri Lanka and Partner 乐鱼（Leyu）体育官网 Sri Lanka) and to Ms. Dulani Fernando (Chief Executive Officer 鈥� Institute of Chartered Accountants of Sri Lanka) are Mr. Reyaz Mihular (Managing Partner 鈥� 乐鱼（Leyu）体育官网 Sri Lanka) and Mr. Suren Rajakarier (Head of Audit 鈥� 乐鱼（Leyu）体育官网 Sri Lanka).
Suren Rajakarier, Head of Audit 鈥� 乐鱼（Leyu）体育官网 Sri Lanka noted 鈥淜AMs enhance the communicative value of the auditor's report by providing transparency about the audit鈥� However, he goes on to say 鈥淚n 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鈥�.
Additionally, in the Sri Lankan context a couple of concerns noted are the low number of KAMs in large diversified business groups and KAMs being inadequately granular with brief narratives. This approach may not meet the objective of transparency and being informative.
The report therefore emphasizes on the auditor鈥檚 commitment towards transparency and to provide shareholders a view behind the boardroom discussions about important audit issues that were discussed between the audit partner and those charged with governance, to enhance and add value to the auditor鈥檚 deliverables.