THE INFLUENCE OF EARNINGS MANAGEMENT ON KEY AUDIT MATTERS (KAMs) DISCLOSURE

Abstract

The study was conducted to examine the influence of earnings management on Key Audit Matters (KAMs) disclosure. The independent variable in this study is earnings management, measured using the Modified Jones Model. The dependent variable is the disclosure of Key Audit Matters (KAMs), measured by three indicators the number of Key Audit Matters (KAMs) accounts, the word count of Key Audit Matters (KAMs) disclosure, and the reason for Key Audit Matters (KAMs) disclosure. There are three control variables in this study company size, profitability, and leverage.

The population of this study consists of companies listed on the Indonesia Stock Exchange (IDX) during 2022 and 2023. The sample was selected using purposive sampling method, resulting in a total sample of 1080 companies. The research data were analyzed using logistic regression and linear regression analysis with Eviews-12.

The test results show that the earnings management variable has a positive and significant inlfuence on the disclosure of Key Audit Matters (KAMs) as measured by the number of accounts. However, earnings management does not have a significant influence on the disclosure of Key Audit Matters (KAMs) when measure by the word count and reason for disclosing Key Audit Matters (KAMs).