The Influence of Big 4 Audit Firms and Audit Fees on the Communication of Key Audit Matters with the Moderating Role of Audit Committee Financial Expertise
DOI:
https://doi.org/10.38035/dijefa.v7i2.6795Keywords:
Key Audit Matters, Big 4 Audit Firms, Audit Fees, Audit Committee Financial ExpertiseAbstract
This study examines the effect of Big 4 audit firms and audit fees on the communication of Key Audit Matters, with audit committee financial expertise as a moderating variable. The study was conducted on companies listed on the Indonesia Stock Exchange during 2022–2024. This research uses a purposive sampling method, resulting in a sample of 501 companies from a population of 930, with a total of 1,503 observations. The analytical method used is negative binomial regression. The results of this study show that Big 4 audit firms have a significant positive effect on both the number of issues and number of words in KAMs. Audit fees do not have a significant effect on the number of KAMs issues but have a significant negative effect on the number of KAMs words. In addition, audit committee financial expertise is able to strengthen the relationship between Big 4 audit firms and both the number of issues and the number of words in KAMs. Conversely, it is not able to moderate the relationship between audit fees and both the number of issues and words in KAMs.
References
Abdullatif, M., & Al-Rahahleh, A. S. (2020). Applying a new audit regulation: Reporting Key Audit Matters in Jordan. International Journal of Auditing, 24(2), 268–291.
Abu, N. A., & Jaffar, R. (2020). Audit Committee Effectiveness and Key Audit Matters. Asian Journal of Accounting and Governance, 14(06), 1–12.
Adamu, I. A., Muhammad, M. M., & Teriyma, O. S. (2024). The Nexus Between Audit Committee Attributes And Key Audit Matters: Evidence From Insurance Industry. Kashere Journal of Management Sciences, 17(2).
Alduneibat, K. A. (2024). Factors Affecting the Level of Key Audit Matters Disclosure: Evidence from Jordan. Jordan Journal of Business Administration, 20(2), 209–227.
Alvania, A., & Astuti, C. D. (2025). Pengaruh Biaya Audit, Kantor Akuntan Publik, dan Komite Audit Terhadap Hal Audit Utama. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 7(3), 1473–1489. https://doi.org/10.47467/alkharaj.v7i3.6976
Boonlert-U-Thai, K., & Suttipun, M. (2023). Influence of External and Internal Auditors on Key Audit Matters (KAMs) Reporting in Thailand. Cogent Business and Management, 10(3), 1–17. https://doi.org/10.1080/23311975.2023.2256084
Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics Methods and Application.
Dhull, S., Gonthier-Besacier, N., & Jérôme, T. (2025). Key audit matters disclosures from a legitimacy perspective: A European analysis. The British Accounting Review.
Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. Pacific Sociological Review, 18(1), 122–136.
Fatin, R. S. (2024). Pengaruh Implementasi Key Audit Matters (KAM) Terhadap Kualitas Audit. Universitas Islam Negeri Syarif Hidayatullah Jakarta.
Haris, M. Al, & Arum, P. R. (2022). Negative Binomial Regression And Generalized Poisson Regression Models On The Number Of Traffic Accidents In Central Java. Jurnal Ilmu Matematika Dan Terapan, 16(2), 471–482.
Hosseinniakani, M., Overland, C., & Samani, N. (2024). Do key audit matters matter ? Correspondence between auditor and management disclosures and the role of audit committees. Journal of International Accounting, Auditing and Taxation, 55.
Hussin, N., Salleh, M. F. M., Ahmad, A., & Rahmat, M. M. (2022). The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia. Management and Accounting Review, 21(2), 239–262. https://doi.org/10.24191/MAR.V21i02-10
IAASB. (2011). Enhancing the Value of Auditor Reporting : Exploring Options for Change. Internal Federation of Accountants, 1–14.
IAASB. (2015). International Standard on Auditing (ISA) 701 : Communicating Key Audit Matters in the Independent Auditor’S Report. International Auditing Standards, 682–709.
IAPI. (2021). Standar Audit 701 (2021) Pengomunikasian Hal Audit Utama dalam Laporan Auditor Independen. Standar Profesional Akuntan Publik, 701(Revisi), 1–22.
IAPI. (2023). Penerapan Tahun Pertama SA 701 Tentang Pengomunikasian Hal Audit Utama (HAU) di Indonesia. Institut Akuntan Publik Indonesia, 58.
Jensen, & Meckling. (1976). Teori Keagenan.
Joudeh, N., & Aqel, S. (2024). Do audit firm and audit committee characteristics influence the reporting of key audit matters? Evidence from Palestine. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2396537
Maulana, Y., Maulana, D., & Maulana, J. (2024). Kualitas Audit: Fee Audit Dan Ukuran Kantor Akuntan Publik. Logistics and Accounting Development, 5(2), 411–422.
Putra, R. J. P., & Dwita, S. (2024). The Influence of Company Characteristics on Key Audit Matters (KAM). Wahana Riset Akuntansi, 12(1), 79–82.
Qadrina, M. F., & Raharja, S. (2024). Analisis Faktor-Faktor yang Memengaruhi Pengungkapan Key Audit Matters di Indonesia. Jurnal Wahana Akuntansi, 19(1), 67–83. https://doi.org/10.21009/wahana.19.033
Rahaman, M. M., & Karim, M. R. (2023). How do board features and auditor characteristics shape key audit matters disclosures? Evidence from emerging economies. China Journal of Accounting Research, 16(4), 100331.
Robiah, R. H., & Sudrajat. (2025). Determinasi Pengungkapan Key Audit Matters pada Perusahaan Sektor Finansial yang Terdaftar di Bursa Efek Indonesia Tahun 2022 dan 2023. Jurnal Ekonomi Bisnis Dan Akuntansi, 5(1), 16–27.
Sumartono, & Ardianto. (2025). The Institutional Ownership, Auditor Characteristics and KAM Disclosure: Evidence from Emerging Markets. International Journal of Innovative Research and Scientific Studies, 8(2), 3269–3278.
Suryadi, F., Jonathan, S., Jonatan, K., & Ohyver, M. (2023). Handling overdispersion in poisson regression using negative Handling overdispersion in poisson regression using negative binomial regression for poverty case in west java binomial regression for poverty case in west java. Procedia Computer Science, 216, 517–523.
Suttipun, M. (2020). Factors Influencing Key Audit Matters Reporting in Thailand. Asian Journal of Accounting Perspectives, 13(1), 26–39.
Suttipun, M. (2022). External Auditor and KAMs Reporting In Alternative Capital Market Of Thailand. Meditari Accountancy Research, 30(1), 74–93.
Velte, P. (2020). Associations Between The Financial and Industry Expertise of Audit Committee Members and Key Audit Matters within Related Audit Reports. Journal of Applied Accounting Research, 21(1), 185–200.
Vickneswaran, A. (2026). A systematic literature review on determinants of key audit matters disclosure : an international perspective. International Journal of Disclosure and Governance, 3101.
Wuttichindanon, S., & Issarawornrawanich, P. (2020). Determining Factors of Key Audit Matter Disclosure in Thailand. Pacific Accounting Review, 32(4), 563–584.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Adillah Abir Syofnita, Annisaa Rahman
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
