Abstract:

The objective of this paper is to continue the work of the authors on the key audit matters (further also referred to as “Key Audit Matters” or “KAM”) as well summarize and present the results of the research performed in respect of the key audit matters determined and communicated in the independent auditors’ reports issued in conjunction with the audit of the annual financial statements of CAC 40 constituent companies for 2018 and 2017.

The research focused primarily on reading reporting requirements in respect of key audit matters relating to audits of historical financial information as defined in the International Standards on Auditing (ISA) and examination of the auditors’ reports issued in conjunction with the audit of the 2018 and 2017 annual financial statements of the CAC 40 constituent companies listed on Euronext Paris (France).

It was tentatively assumed that both (1) the number and (2) the nature of Key Audit Maters identified and reported in conjunction with the audit of the annual financial statements of CAC 40 constituent companies for 2018 and 2017 will not vary significantly.

Because Dassault Systemes and Hermes were added to CAC 40 only in 2018, they were not taken for consideration and consequently a total number of companies reviewed was reduced to 38.