Determinants of Key Audit Matters disclosure: a comparative study of banking and insurance sectors in Portugal, the United Kingdom and the Netherlands

Abstract

This study examines determinants of Key Audit Matters (KAMs) disclosure in audit reports from 84 companies in the banking and insurance sectors in Portugal, the United Kingdom, and the Netherlands. Using a mixed-method approach, the research highlights that Big 4 auditors disclose more KAMs, influenced by fees, entity size, and complexity, while profitability and indebtedness show weaker effects. Regional and sectoral variations also shape KAM reporting. Results underscore KAMs' role in enhancing audit transparency and stakeholder trust. This work was supported by Fundação para a Ciência e a Tecnologia and projects funded by POR Lisboa and POR Norte. Special thanks to my advisor and my parents for their guidance and unwavering support.