This study examines the disclosure of Key Audit Matters (KAMs) in the audit reports of Palestinian listed companies following the adoption of ISA 701. The standard requires auditors to report the most significant issues encountered during audits, aiming to reduce information asymmetry and bridge the audit expectation gap. Using 225 audit reports from companies listed on the Palestine Stock Exchange between 2018 and 2022, this study analyzes the nature, extent, and readability of KAM disclosures. The findings indicate that the most common KAMs pertain to provisions and revenue, with noticeable variations in disclosure across industries and audit firms. Big 4 audit firms report fewer KAMs per client compared to smaller firms, and the readability of KAMs is generally high across all firms. This research contributes to the understanding of the application of ISA 701 in a developing economy and highlights the practical implications for regulators and financial statement users regarding audit transparency and quality.