Abstract
In the dynamic realm of contemporary business, financial and non-financial audits are crucial for transparency, reliability, and sustainability. With rising concerns over Environmental, Social, and Governance (ESG) issues, stakeholders demand assurance on both financial and non-financial reporting. Accounting firms audit financial statements, both accounting and non-accounting firms provide non-financial reporting assurance. Given its novelty, regulators and investors focus on extended external reporting quality. Few nations mandate non-financial reporting and assurance, though global standards are emerging. Harmonizing audit practices remains challenging, yet necessary. Traditional audit reports had limited communicative value, leading to the introduction of Key Audit Matters (KAMs) reporting. This chapter shows application of KAMs reporting in Europe. Auditor competence and independence are crucial for financial and non-financial reporting, and audit quality. Future auditors are more likely to verify and report on both the financial and non-financial aspects of the firms.