The average number of KAMs reported in 2018 was 2.66 per audit opinion. Interestingly, this number has been trending downward each year since the adoption of KAMs as a standard in Europe. (Note: The average number of KAMs disclosed so far in 2019 is 2.64.)
In this article, Audit Analytics analyzes significant trends in the number of KAMs disclosed in annual reports as the key audit matters (KAMs) database continues to expand. In order to understand which types of companies have a higher number of KAMs, Audit Analytics looked at market cap, market index and the auditor conducting the audit.