Key Audit Matters and Auditing Issues: A Case Study on Lehman Brothers and ASA 701

The paper provides a study on the Key audit matters and auditing issues that led to the downfall of Lehman Brothers. It sheds light on the new auditing standard ASA 701 that makes it mandatory for the auditors to make adequate disclosures of KAMs in their audit reports. The mining industry is studied in the light of ASA 701 through the selection of eight different companies listed on the ASX.