Audit partner characteristics and key audit matters (KAMs) disclosure: evidence from Indonesia

Purpose This study examines the association between audit partner characteristics and the disclosure of key audit matters (KAMs) in Indonesia. Design/methodology/approach Using annual reports of firms listed on the Indonesia Stock Exchange (IDX) for 2022, this study manually collects KAM disclosures and employs content analysis based on both the number of KAM items and the total word count of KAM disclosures. The proposed hypotheses are then tested using Ordinary Least Squares (OLS) regression analysis. Findings The results indicate that audit partners affiliated with reputable audit firms are positively associated with both the number and the extent of KAM disclosures. Furthermore, female audit partners tend to provide more comprehensive and detailed KAM explanations compared to their male counterparts. However, the evidence does not support the hypotheses suggesting that female partners disclose fewer KAMs or that busier audit partners provide fewer or less extensive KAM disclosures. Research limitations/implications These findings contribute to the growing body of literature on audit partner characteristics and audit transparency, particularly within emerging markets adopting enhanced auditing standards such as SA 701. Practical implications The study suggests that regulators and audit firms should carefully consider partner-level attributes, such as gender diversity and workload management when designing audit engagement assignments, as these factors may influence the nature and clarity of audit communications and contribute to more informative and transparent KAM disclosures. Originality/value This study contributes to the growing body of literature on audit partner attributes and KAM reporting by providing early empirical evidence from the Indonesian context. It highlights the significant role of gender and audit firm reputation in shaping audit reporting transparency under the enhanced auditing requirements of SA 701.