Title: The role of AC and corporate attributes on KAMs reporting: Malaysian evidence

Authors: Ummi Junaidda Hashim; Norsiah Ahmad

Addresses: Faculty of Business and Management, School of Accounting, University Sultan Zainal Abidin, Gong Badak Campus, 21300 Kuala Nerus, Terengganu Darul Iman, Malaysia ' Faculty of Business and Management, School of Accounting, University Sultan Zainal Abidin, Gong Badak Campus, 21300 Kuala Nerus, Terengganu Darul Iman, Malaysia

Abstract: ISA 701, communicating key audit matters (KAMs) in the independent auditor's report (AR), is introduced to address the importance of communicating information to users. To understand the role of AC and corporate attributes in issuing KAMs, this study examined a total of 976 annual reports of companies listed in Bursa Malaysia from the period of 2016 to 2018. The extent of KAMs practices and disclosure in an independent AR in the Malaysian context has been further investigated using a content analysis approach. Pooled OLS regression was employed to examine the objective. The findings showed that AC independence and AC meeting, size, and profitability significantly influenced KAMs reporting in the Malaysian market. The role of the AC holds the interrelated value with the resource-based theory where the member of the committee, as resources, possesses dynamic capabilities that are useful in enhancing the reporting of KAMs.

Keywords: key audit matters; KAMs; corporate attributes; audit committee; AC; Malaysian; auditor's report; AR.

DOI: 10.1504/AAJFA.2024.140939

Afro-Asian Journal of Finance and Accounting, 2024 Vol.14 No.5, pp.626 - 644

Received: 17 Jun 2021
Received in revised form: 05 Sep 2022
Accepted: 05 Oct 2022
Published online: 04 Sep 2024 *

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