Communicative Value of Key Audit Matters of Companies in Agro and Food Industry and Consumer Products Groups Listed on the Stock Exchange of Thailand

Abstract

          The purpose of this study was to examine Communicative Value of Key Audit Matter (KAM) of companies in agro and food industry and consumer products groups Listed on The Stock Exchange of Thailand. The data was collected from the financial reporting and the auditor’s report in English during 2015 – 2017 of companies in agro and food industry and consumer products groups listed on the stock exchange of Thailand, data for 3 years, total amount 248 data (82, 79 and 87 companies, respectively). Multiple regression analysis was used to analyze the data. The results showed that the auditor’s report with KAM is easier to read than auditor’s report without KAM. Moreover, the results revealed that the tone of the auditor’s report with KAM has more negative tone than which without KAM. These results indicated that adding KAM in the auditor’s report will enable the users of the financial statements to easily understand what the auditor want to communicate and leads the users to become more confidence in the financial statements, which is truly increase the Communicative Value of the financial reporting. Therefore, it is benefit to the Federation of Accounting Professions in order to use these information as a guideline for consideration about providing an opportunity for the auditor to specify the format of the auditor’s report, including the choice of words to communicate which enhanced the value of the communication on the auditor’s report.