The consequences of disclosing key audit matters (KAMs): A review of the academic literature

A.H. Gold, Melina Heilmann

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Recent years have witnessed a change in the auditor reporting model. One of these developments is the auditor’s issuance of so-called Key Audit Matters in the auditor’s report, where they disclose “those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statements of the current period”. In this paper, we review the emerging body of academic research which examines the effects of KAM disclosures in the auditor’s report. We investigate research that has examined the effect of KAM disclosures on (1) investor behavior and market reaction, (2) auditor responses, (3) auditor liability, and (4) client management responses. The objective of this paper is to provide an overview of the existing literature and to summarize the preliminary findings and implications of 22 studies.
Original languageEnglish
JournalMaandblad voor accountancy en bedrijfseconomie
Volume93
Issue number1
DOIs
Publication statusPublished - 11 Mar 2019

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Auditors
Audit
Disclosure
Academic research
Professional judgment
Investor behavior
Market reaction
Financial statements
Auditor liability

Cite this

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The consequences of disclosing key audit matters (KAMs): A review of the academic literature. / Gold, A.H.; Heilmann, Melina.

In: Maandblad voor accountancy en bedrijfseconomie, Vol. 93, No. 1, 11.03.2019.

Research output: Contribution to JournalArticleAcademicpeer-review

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