The Role of Auditor Characteristics in Key Audit Matters Disclosures: Evidence from Indonesian Listed Manufacturing Companies

Khairul Insan Al Amin; R. R. Sri Handayani

doi:10.24815/jdab.v12i1.45155

The Role of Auditor Characteristics in Key Audit Matters Disclosures: Evidence from Indonesian Listed Manufacturing Companies

Khairul Insan Al Amin, R. R. Sri Handayani

Abstract

This study examined the influence of auditor characteristics on Key Audit Matters (KAM) disclosure. The independent variables are audit firm reputation, audit fees, auditor industry specialization, auditor rotation, and audit tenure. The population consists of manufacturing firms listed on the Indonesia Stock Exchange (IDX) between 2022 and 2023. The samples were selected using a purposive sampling technique, resulting in 245 firm-year observations. Using multiple linear regression analysis, this study found that audit fees positively affect KAM disclosure, while audit firm reputation, auditor industry specialization, auditor rotation, and audit tenure did not have a significant impact. The findings imply that financial incentives, such as higher audit fees, may encourage auditors to provide more detailed and transparent KAM disclosures.

Keywords

Audit fee; audit firm reputation; auditor industry specialization; auditor rotation; audit tenure; key audit matters

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DOI: https://doi.org/10.24815/jdab.v12i1.45155

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Accounting Department collaborated with IAI KAPd (Institute of Indonesia Chartered Accountant)
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143

Jurnal Dinamika Akuntansi dan Bisnis by Prodi Akuntansi Universitas Syiah Kuala is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.usk.ac.id/JDAB/index.