We recently analyzed the frequency in which key audit matters (KAMs) were disclosed in 2017 and 2018. In this post, we take a closer look at the changes in the number of KAMs disclosed by companies during the same time period.
This analysis looks at audit opinions from more than 2,400 companies that had KAMs in both 2017 and 2018. Of these companies, 57% had no change in the number of KAMs disclosed from 2017 to 2018, 24% decreased the number of KAMs, and only 19% increased the number of KAMs.
The table below lists the companies having the greatest change in the number of KAMs. The two companies which tied for the largest decrease between years dropped five KAMs each. The three companies which tied for the largest increase added four KAMs each from 2017 to 2018.
It is interesting to note that the two companies with the largest decrease, TLA Worldwide PLC and IDOX PLC, changed auditors for the 2018 fiscal year end.