Norazian Hussin^1,2♣, Mohd Fairuz Md. Salleh³, Azlina Ahmad¹ and Mohd Mohid Rahmat^1
1Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor,
Malaysia
²Faculty of Accountancy, Universiti Teknologi MARA, Selangor Branch, Puncak Alam
Campus, Malaysia
³Graduate School of Business, Universiti Kebangsaan Malaysia, Selangor, Malaysia

Key audit matters (KAM) functions to optimise auditors’ reporting transparency to emphasise the most pivotal audit matters occurring from auditors’ perspectives. Although auditors substantially ascertain the KAM details to be documented in the auditor’s report, the extent to which audit firm attributes impact its disclosures in Malaysia remain unaddressed given the paucity of studies on present KAM reporting patterns in the FTSE100 companies listed under Bursa Malaysia. This study aimed to examine KAM reporting trends and assess the correlation between audit firm characteristics and KAM disclosures in FTSE100. Content analysis quantified KAM reporting in audit reports following the yearly reports issued by sample companies between 2017 and 2019. The number of KAM reporting proved to be similar annually with an average of 2.36 KAM issues per company. A significant and positive connection was identified between audit fees, leverage, and complexity with the number of KAM disclosure while a significant and negative counterpart was highlighted between female audit partners, audit firm tenure, and the number of KAM. Overall, the present study expanded the current body of literature with significant outcomes that support auditors, regulators, and policymakers who provided a sound comprehension of KAM disclosures in Malaysia.

Keywords: Key Audit Matter, External Auditor, Audit Fees, Audit Firm Tenure, Malaysia

^♣Corresponding Author: Norazian Hussin, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia;
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: 603-32587388