A1 Journal article (refereed)
Do key audit matters (KAMs) matter? : Auditors’ perceptions of KAMs and audit quality in Finland (2021)
Rautiainen, A., Saastamoinen, J., & Pajunen, K. (2021). Do key audit matters (KAMs) matter? : Auditors’ perceptions of KAMs and audit quality in Finland. Managerial Auditing Journal, 36(3), 386-404. https://doi.org/10.1108/maj-11-2019-2462
JYU authors or editors
Publication details
All authors or editors: Rautiainen, Antti; Saastamoinen, Jani; Pajunen, Kati
Journal or series: Managerial Auditing Journal
ISSN: 0268-6902
eISSN: 1758-7735
Publication year: 2021
Publication date: 10/05/2021
Volume: 36
Issue number: 3
Pages range: 386-404
Publisher: Emerald
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.1108/maj-11-2019-2462
Publication open access: Not open
Publication channel open access:
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/78583
Abstract
Key audit matters (KAMs) in International Standard for Auditing, 701 seek to enhance the value of the auditor’s report by increasing the transparency of how the audit was performed. The purpose of this study is to investigate how professional auditors themselves perceive the impact of KAMs on audit quality and audit effectiveness.
Design/methodology/approach
Statistical analyses of an electronic survey of certified public auditors (CPAs) in Finland.
Findings
Regarding the perceptions of KAMs, the authors found two dominant views on auditing: quality and efficiency. In general, the respondents did not consider that KAMs improve audit quality. However, auditors focusing on efficiency considered that KAMs make the audit process more fluent. Further, the use of KAMs may facilitate audit effectiveness and cooperation between auditors and managers. The authors also found three factors related to the KAMs processes and auditing work: effectiveness, risks and workload.
Practical implications
Auditors may use KAMs to provide focus in their work. This facilitates balancing between the demands for added value while keeping the workload and audit risks at a tolerable level.
Originality/value
This study contributes to the emerging literature on KAMs as well as to the literature examining practitioner views of changes in auditing regulation. It is, as far as we know, the first study to report survey evidence on how CPAs themselves perceive KAMs and the effects of KAMs on audit work in an European Union country context.
Keywords: audit of the accounts; audit reports; standards; auditors (accountants); conceptions; quality; efficiency (properties)
Free keywords: audit; quality; KAMs; ISA; survey
Contributing organizations
Ministry reporting: Yes
Reporting Year: 2021
JUFO rating: 1
