Analysis of Key Audit Matters Disclosures in Financial Reporting: The First Evidence from Indonesia

Batara, Gamal
Jalaluddin, Jalaluddin
Yahya, M. Rizal

Journal of Accounting Auditing and Business
Vol 7, No 2 (2024): July Edition

The aim of this study is to explore the first year of Key Audit Matters (KAMs) disclosure in Indonesia, which has been fully adopted since 2022. The research reports on matters published in 806 statutory audit reports of listed companies in 2022. This study provides the first description of KAMs disclosure by Indonesian public companies. The findings suggest that the most common KAM disclosures are related to "allowance for doubtful debt," "revenue (excluding fraud)," "valuation of inventories," "fixed assets (including depreciation)," and "property valuation." The study found differences between Big-4 auditors and non-Big-4 auditors concerning the average number of KAMs disclosed