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Do Industry Expert Auditors Write Better KAM Disclosures?

Do Industry Expert Auditors Write Better KAM Disclosures?

Summary

Accounting and Reporting Audit and Assurance Data & Analytics

This study examines whether audit partners with deep industry expertise produce more informative Key Audit Matter (KAM) disclosures by reducing the use of standardized, “boilerplate” language. Using a large dataset of 6,220 audit reports (containing 12,042 KAMs) from Taiwanese public companies between 2016–2019, the authors apply text analysis to measure how much of KAM reporting is generic versus client-specific.