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INVESTOR RESPONSES TO THE DISCLOSURE OF KEY AUDIT MATTERS: A LITERATURE REVIEW

Jovana Stojanović & Milica Đorđević

Facta Universitatas: Economics and Organization2025https://doi.org/10.22190/fueo251014018sarticle
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What the paper says

The aim of this paper is to examine, through a descriptive analysis of selected empirical studies, whether the disclosure of Key Audit Matters (KAMs) has been a contributing factor to the enhanced communicative and informational value of the auditor’s report. Despite the expectation that highlighting issues which, in the auditor’s professional judgment, were of the greatest significance for the audit process would have a positive effect on investors’ reactions, existing studies point to inconsistent findings. A number of studies show that KAMs may increase users’ confidence in financial statements, reduce information risk and improve the efficiency of capital markets. Conversely, other studies do not confirm significant investors’ reactions, thereby questioning the assumption that the new auditor’s report model in practice brings a higher level of transparency and informational value compared to the previous period. The observed differences in findings can be associated both with varying methodological approaches and with the specific characteristics of national economies, including the level of economic development, institutional frameworks and the quality of financial reporting and auditing. The obtained findings are relevant for regulators, investors as well as the academic and professional community, and indicate the need for further research into KAMs management mechanisms for a more comprehensive assessment of the effects of regulatory changes in the field of auditor reporting.

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https://doi.org/https://doi.org/10.22190/fueo251014018s

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@article{jovana2025,
  title        = {{INVESTOR RESPONSES TO THE DISCLOSURE OF KEY AUDIT MATTERS: A LITERATURE REVIEW}},
  author       = {Jovana Stojanović & Milica Đorđević},
  journal      = {Facta Universitatas: Economics and Organization},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.22190/fueo251014018s},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.