Communication Value of Key Audit Matters of Companies in Financials Group Listed on the Stock Exchange of Thailand
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Abstract
This study was aimed at examining the association between communication value and Key Audit Matter (KAM) of companies in financials group listed on the Stock Exchange of Thailand. The data were collected primarily from financial reporting and auditors’ reports (English version) during 2015 - 2017 of listed companies in financials group on the Stock Exchange of Thailand. Multiple regression analysis was used to assess the model. The findings revealed that the new version of auditor’s report with KAM was easier to read than the previous version without KAM which imply that the new auditor’s report has more valuable in communication than the previous version. In the meanwhile, the findings shown that the new version of auditor’s report with KAM has more negative tone of contents than the one without KAM. Since KAM expanded more information about the company’s risk, therefore most of the words disclosed in the auditor’s report are more negative. From the results, which are consistent with the concept of communication value, it can be assumed that the auditor’s report with additional communication regarding the Key Audit Matter (KAM) increased the value of communication of the auditor’s report. These results are beneficial to those who have oversight duties in order to use these information as a guideline to enhance KAM paragraph in the auditor’s report, which in turn, increasing the value of the communication on the auditor’s report.
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