Answer
KAMs (ISA 701) are those matters that, in the auditor's professional judgment, were of most significance in the audit of the current period's financial statements—selected from matters communicated to those charged with governance. Required for listed entities, the KAM section describes each matter and how the audit addressed it, increasing transparency. KAMs are not a substitute for an opinion or a modification.
Real-world example The report's KAM section explains the significant judgment around goodwill impairment and the procedures performed on it.