Question:
As an auditor of a listed company for the year ended 31st March, 2019, how would you determine the 'Key Audit Matters'?


Answer:
Determining Key Audit Matters: As per SA 701, “Communicating Key Audit Matters in the Independent Auditor’s Report”, the auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit. In making this determination, the auditor shall take into account the following:
(i) Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with SA 315, “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment”. 
(ii) Significant auditor judgments relating to areas in the financial statements that involved significant management judgment, including accounting estimates that have been identified as having high estimation uncertainty.
(iii) The effect on the audit of significant events or transactions that occurred during the period. The auditor shall determine which of the matters determined above were of most significance in the audit of the financial statements of the current period and therefore are the key audit matters