The effect of Key Audit Issues disclosed in independent audit reports on the financial performance and credit demand of enterprises

This study examines the impact of Key Audit Matters (KAMs) on companies' financial performance and the evaluation of credit requests. Two studies were conducted within the scope of the study. The first study is based on the regression analysis of the KAM word counts and financial ratios disclosed in the independent audit reports of companies listed on Borsa Istanbul (BIST100) between 2017 and 2021. The second study consists of the evaluation of the findings and results obtained from the survey conducted on credit institutions. When the impact between KAM word counts and financial ratios is examined, it is understood that the increase in the disclosure of KAMs has no effect on financial performance, but when the survey results are evaluated, it is understood that professionals working in credit institutions to evaluate credit requests benefit from KAMs. The study aims to enrich the understanding of KAMs and their impact on companies' finances and the impact of KAMs on credit requests and offers suggestions to interested parties on the effects of KAMs.