Impact of Company Complexity and Investor Behavior on Key Audit Matters: Academic Literature Review
Main Article Content
Abstract
In the context of accounting and auditing, the term “key audit matters” refers to key issues that are of primary concern to auditors in conducting an audit. In today’s complex and dynamic business world, companies often operate in an environment full of challenges, risks and uncertainties. This study uses the following keywords: “Key Audit Matters”, “Complexity” and “Investor Behavior”. The search databases used are Google Scholar and Web of Science. We investigate studies that have examined the impact of KAM disclosure on (1) Corporate Complexity, and (2) investor behavior and market reaction. The purpose of this paper is to provide an overview of the existing literature and to summarize the preliminary findings and implications of 8 studies. Key Audit Matters have an effect on investor response and Corporate Complexity leads to increased disclosure in key audit matters.
Article Details

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
C. Ferreira and A. I. Morais, “Analysis of the relationship between company characteristics and key audit matters disclosed,” Rev. Contab. Finanças, vol. 31, pp. 262–274, 2019.
M. Suttipun, “Factors influencing key audit matters reporting in Thailand,” Asian J. Account. Perspect., vol. 13, no. 1, pp. 26–39, 2020.
X. Shao, “Research on disclosure status and influencing factors of key audit matters,” Mod. Econ., vol. 11, no. 03, p. 701, 2020.
A. Özcan, “What factors affect the disclosure of key audit matters? Evidence from manufacturing firms,” Uluslararası Yönetim İktisat ve İşletme Derg., vol. 17, no. 1, pp. 149–161, 2021.
P. Velte and J. Issa, “The impact of key audit matter (KAM) disclosure in audit reports on stakeholders’ reactions: a literature review,” Probl. Perspect. Manag., vol. 17, no. 3, pp. 323–341, 2019.
O. Dusadeedumkoeng, J. L. Gandía, and D. Huguet, “Determinants of key audit matters in Thailand,” J. Compet., vol. 15, no. 3, p. 184, 2023.
B. S. Yoga and A. Dinarjito, “The impact of key audit matters disclosure on communicative value of the auditor’s report: a systematic literature review,” J. Akunt. Dan Keuang. Indones., vol. 18, no. 1, p. 2, 2021.
M. Altawalbeh and M. Alhajaya, “The investors reaction to the disclosure of key audit matters: Empirical evidence from Jordan,” Int. Bus. Res., vol. 12, no. 3, pp. 50–57, 2019.
I. Pinto and A. I. Morais, “What matters in disclosures of key audit matters: Evidence from Europe,” J. Int. Financ. Manag. Account., vol. 30, no. 2, pp. 145–162, 2019.