The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia

Key audit matters (KAM) functions to optimise auditors’ reporting transparency to emphasise the most pivotal audit matters occurring from auditors’ perspectives. Although auditors substantially ascertain the KAM details to be documented in the auditor’s report, the extent to which audit firm attribu...

Full description

Bibliographic Details
Published in:Management and Accounting Review
Main Author: Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
Format: Article
Language:English
Published: Universiti Teknologi Mara 2022
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145831542&doi=10.24191%2fMAR.V21i02-10&partnerID=40&md5=61b446769680a89d3db7eeee874c15ce
id 2-s2.0-85145831542
spelling 2-s2.0-85145831542
Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
2022
Management and Accounting Review
21
2
10.24191/MAR.V21i02-10
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145831542&doi=10.24191%2fMAR.V21i02-10&partnerID=40&md5=61b446769680a89d3db7eeee874c15ce
Key audit matters (KAM) functions to optimise auditors’ reporting transparency to emphasise the most pivotal audit matters occurring from auditors’ perspectives. Although auditors substantially ascertain the KAM details to be documented in the auditor’s report, the extent to which audit firm attributes impact its disclosures in Malaysia remain unaddressed given the paucity of studies on present KAM reporting patterns in the FTSE100 companies listed under Bursa Malaysia. This study aimed to examine KAM reporting trends and assess the correlation between audit firm characteristics and KAM disclosures in FTSE100. Content analysis quantified KAM reporting in audit reports following the yearly reports issued by sample companies between 2017 and 2019. The number of KAM reporting proved to be similar annually with an average of 2.36 KAM issues per company. A significant and positive connection was identified between audit fees, leverage, and complexity with the number of KAM disclosure while a significant and negative counterpart was highlighted between female audit partners, audit firm tenure, and the number of KAM. Overall, the present study expanded the current body of literature with significant outcomes that support auditors, regulators, and policymakers who provided a sound comprehension of KAM disclosures in Malaysia. © 2022, Universiti Teknologi Mara. All rights reserved.
Universiti Teknologi Mara
26007975
English
Article
All Open Access; Bronze Open Access
author Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
spellingShingle Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
author_facet Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
author_sort Hussin N.; Salleh M.F.M.; Ahmad A.; Rahmat M.M.
title The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
title_short The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
title_full The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
title_fullStr The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
title_full_unstemmed The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
title_sort The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia
publishDate 2022
container_title Management and Accounting Review
container_volume 21
container_issue 2
doi_str_mv 10.24191/MAR.V21i02-10
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145831542&doi=10.24191%2fMAR.V21i02-10&partnerID=40&md5=61b446769680a89d3db7eeee874c15ce
description Key audit matters (KAM) functions to optimise auditors’ reporting transparency to emphasise the most pivotal audit matters occurring from auditors’ perspectives. Although auditors substantially ascertain the KAM details to be documented in the auditor’s report, the extent to which audit firm attributes impact its disclosures in Malaysia remain unaddressed given the paucity of studies on present KAM reporting patterns in the FTSE100 companies listed under Bursa Malaysia. This study aimed to examine KAM reporting trends and assess the correlation between audit firm characteristics and KAM disclosures in FTSE100. Content analysis quantified KAM reporting in audit reports following the yearly reports issued by sample companies between 2017 and 2019. The number of KAM reporting proved to be similar annually with an average of 2.36 KAM issues per company. A significant and positive connection was identified between audit fees, leverage, and complexity with the number of KAM disclosure while a significant and negative counterpart was highlighted between female audit partners, audit firm tenure, and the number of KAM. Overall, the present study expanded the current body of literature with significant outcomes that support auditors, regulators, and policymakers who provided a sound comprehension of KAM disclosures in Malaysia. © 2022, Universiti Teknologi Mara. All rights reserved.
publisher Universiti Teknologi Mara
issn 26007975
language English
format Article
accesstype All Open Access; Bronze Open Access
record_format scopus
collection Scopus
_version_ 1809677891525410816