Readiness of Independent Auditors in The Application of Key Audit Matters and Emphasis of Matter in the Financial Statement Audit Process

The Public Accounting Firm in Semarang has received educational training from the Indonesian Institute of Certified Public Accountants regarding the latest audit standards. And as a follow-up to this training, the Public Accounting Firm in Semarang held internal training and created a group to discuss the latest audit standards, especially KAM. Communicating significant matters regarding issuers’ financial reports is outlined in AS 701 to provide additional audit information to stakeholders, including users of financial reports, to make it more informative and transparent. Regarding implementation, KAM must be disclosed in independent audit reports for companies going public. The results of this research have implications for auditors at the Semarang Public Accounting Firm so that when carrying out engagements with clients, auditors are able to identify significant risks that arise as a result of implementing Audit Standard 701 Key Audit Matters in independent audit reports. Information obtained from interviews with the Head of the Public Accounting Firm in Semarang. The Public Accounting Firm in Semarang is still carrying out audits of local companies. The purpose of this research was to analyze the understanding and readiness of auditors of Public Accounting Firms in Semarang in implementing KAM, communicating EOM which is interrelated with KAM, procedures and policies implemented by Public Accounting Firms in Semarang which have used KAM.