This research aims to discuss whether the disclosure of key audit matters (KAM) increases the communicative value of the auditor’s report. It also examines factors that need to be considered related to KAM disclosure. It is carried out in connection with the issuance of the Exposure Draft of Indonesia Audit Standard (AS) 701 on ”Pengomunikasian Hal Audit Utama dalam Laporan Auditor Independen” which was adopted from the International Standard on Auditing 701. In Indonesia, no research was found yet related to this topic. By conducting a systematic literature review of the latest articles from 2012 to 2021, this study found that KAM disclosure increases the communicative value of the auditor’s report, which is useful for report users in their decision-making. This study also informed specific areas that were often disclosed as KAM and provided information related to the factors that can decrease the communicative value of KAM disclosure. The results support the plan of AS 701 implementation in Indonesia because it will increase the communicative value of the auditor’s report. This study will be of interest to auditors in preparing the implementation of AS 701, report users in understanding KAM disclosure, and regulators as initial infor­mation regarding KAM disclosure to support their duties when AS 701 has been effectively implemented in Indonesia.

Bahasa Abstract

Penelitian ini bertujuan untuk membahas apakah pengungkapan key audit matters (KAM) meningkatkan nilai komunikatif laporan auditor dan untuk meneliti hal-hal yang perlu di­perhatikan sehubungan dengan pengungkapan KAM. Penelitian dilakukan sehubungan dengan terbitnya Draf Eksposur Standar Audit (SA) 701 tentang Pengomunikasian Hal Audit Utama dalam Laporan Auditor Independen yang mengadopsi International Standard on Auditing 701. Di Indonesia, Peneliti belum menemukan penelitian terdahulu terkait topik ini. Dengan melakukan tinjauan literatur sistematis (systematic literature review) atas artikel terkini sejak 2012 sampai 2021, penelitian ini menemukan bahwa pengungkapan KAM meningkatkan nilai komunikatif laporan auditor yang berguna bagi pengguna laporan dalam pengambilan keputusannya. Selain itu, penelitian ini menginformasikan area-area spesifik yang penting untuk diungkapkan sebagai KAM. Penelitian ini juga memberikan informasi terkait faktor-faktor yang dapat menurunkan nilai komunikatif pengungkapan KAM. Hasil dari penelitian ini mendukung rencana implementasi SA 701 di Indonesia sebab hal tersebut akan meningkatkan nilai komunikatif dari laporan auditor. Penelitian ini juga bermanfaat bagi auditor dalam mempersiapkan implementasi SA 701, bagi pengguna laporan dalam memahami pengungkapan KAM, dan bagi regulator sebagai informasi awal terkait pengungkapan KAM untuk mendukung pelaksanaan tugasnya ketika SA 701 telah efektif diimplementasikan di Indonesia.


Auditing and Assurance Standards Council. 2017. Questions and answers (Q&A) on the new auditor’s report. Philippines.

Accounting and Coporate Regulatory Au-thority, Association of Chartered Certified Accountants, Institute of Singapore Chartered Accountants, & Nanyang Technological Univer-sity. 2017. Embracing transparancy, enhancing value: A first year review of the enhanced auditor’s report in Singapore. Singapore.

Bedard, J. et al. 2016. Does recent academic research support changes to audit reporting standards?. Accounting Horizons, 30 (2), 255-275.

Boolaky, P. K. and R. Quick. 2016. Bank directors’ perceptions of expanded auditor’s reports. International Journal of Auditing, 20, 158-174.

Browning, M. E. M. and A. Rigolon. 2019. School green space and its impact on academic performance. Interna-tional Journal of Environmental Research and Public Health, 16 (3), 1-22.

Coram, P. J. and L. Wang. 2020. The effect of disclosing key audit matters and accounting standard precision on the audit expectation gap. Interna-tional Journal of Auditing, 1-13.

Ginieis, M., M. V. Sanchez-Rebull., and F. Campa-Planas. 2012. The academic journal literature on air transport: Analysis using systematic literature review methodology. Journal of Air Transport Management, 19, 31-35.

International Auditing and Assurance Standard Board. 2012. Invitation to comment: Improving the auditor’s report. New York.

International Auditing and Assurance Standard Board. 2013. Exposure draft Reporting on audited financial statements: Proposed new and re-vised international standards on auditing (ISAs). New York.

International Auditing and Assurance Standard Board. 2015a. Interna-tional standard on auditing 701: Communicating key audit matters in the independent auditor’s report. New York.

International Auditing and Assurance Standard Board. 2015b. The new auditor’s report: Greater transpar-ency into the financial statement audit. New York.

Institut Akuntan Publik Indonesia. 2021. Draf Eksposur Standar Audit 701: Pengomunikasian hal audit utama dalam laporan auditor independen. South Jakarta.

Jean-Francois, G., R. Laetitia, and D. Stefan. 2013. Is the coverage of google scholar enough to be used alone for systematic reviews. BMC Medical Informatics and Decision Making, 13 (7), 1-5.

Junior, E. D. A., and F. C. Galdi. 2019. The informational relevance of key audit matters. Revista Contabilidade e Financas, 31 (82), 67-83.

Kend, M., and L. A. Nguyen. 2020. Inves-tigating recent audit reform in the Austalian context: An analysis of the KAM disclosures in audit re-ports 2017-2018. International Journal of Auditing. 24, 412-430.

Kitiwong, W., and N. Sarapaivanich. 2020. Consequences of the implementa-tion of expanded audit reports with key audit matters (KAMs) on audit quality. Managerial Auditing Journal, 35 (8), 1095-1119.

Knechel, W.R. et al. 2016. Brain Drain or Survival of the Fittest: Determi¬nants and Consequences of Audi¬tors’ Leaving Public Accounting.

Kohler, A., N. Ratzinger-Sakel, and J. Theis. 2020. The effect of key audit matters on the auditor’s report’s communicative value: Experimental evidence from investment profes-sionals and non-professional inves-tors. Accounting in Europe, 17 (2), 105-128.

Litjens, R., Buuren, J., and Vergoosen, R. 2015. Addressing information needs to reduce the audit expectation gap: Evidence from dutch bankers, au-dited companies and auditors. In-ternational Journal of Auditing, 19, 267-281.

Martin-Martin, A., E. Orduna-Malea, A. Harzing, and E. D. Loper-Cozar. 2017. Can we use Google Scholar to identify highly-cited documents?. Journal of Infometrics, 11 (1), 152-163.

Min, L. M. and P. L. Kee. 2019. Disclo-sures of key audit matters to curb information asymmetry. Interna-tional Journal of Accounting, Fi-nance and Business, 4 (24), 1-12.

Moroney, R., S. Phang, and X. Xiao. 2020. When do investors value key audit matters? European Accounting Re-view. 30 (1), 63-82.

Ozlanski, M. E. 2019. Bright lines vs blurred lines: When do critical audit matters influence investor’s percep-tions of management’s reporting credibility?. Advances in Account-ing, 45 (3), 1-11.

Prasad, P. and P. Chand. 2017. The chang-ing face of the auditor’s report: Im-plications for suppliers and users of financial statements. Australian Ac-counting Review, 27 (4), 348-367.

Sanchis, M. N. et al. 2014. The role of cen-tral sensitization in shoulder pain: a systematic literature review. Semi-nars in Arthritis and Rheumatism, 44 (6), 710-716.

Segal, M. 2019. Key audit matters: Insight from audit experts. Meditary Ac-countancy Research, 27 (3), 472-494.

Simnet, R. and A. Huggins. 2014. Enhanc-ing the auditor’s report: To what ex-tent is there support for the IAASB’s proposed changes? Ac-counting Horizons, 28 (4), 719-747.

Snyder, H. 2019. Literature review as a re-search methodology: An overview and guidelines. Journal of Business Research, 104, 333-339.

Tranfield, D., D. Denyer, and P. Smart. 2003. Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Jour-nal of Management, 14, 207-222.

Velte, P., and J. Issa. 2019. The impact of key audit matters (KAM) disclosure in audit reports on stakeholders’ re-actions: A literature review. Busi-ness Perspectives, 17 (3), 323-341.

Wu, X., Y. Fan, and Y. Yang. 2019. Do critical audit matters signal higher quality of audited financial infor-mation? Evidence form asset impair-ment. China Journal of Accounting Studies, 7 (2), 170-183.