This report discusses the rationales behind the introduction of ASA 701, triggered by events like the Lehman Brothers collapse, and analyzes key audit matters within the Australian banking industry. It highlights ASA 701's purpose in enhancing communication through transparent auditing of key transactions, its objectives concerning the responsibilities of auditors in ascertaining and communicating key audit matters, and its importance in identifying events crucial for audit. The report also addresses the significance of the going concern assumption and its analysis by auditors. Furthermore, the report evaluates the efficiency of auditors in reporting key audit matters of major Australian banks, referencing their 2018 annual reports and emphasizing the inclusion of account names and note numbers for user understanding. It also points out how auditors provide crucial information and details on key audit matters, including amounts at risk of material misstatement, underlying judgments, assumptions, and estimates, along with relevant accounting standard references.
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