Abstract

Objectives: This study aims to analyze the factors influencing the disclosure of key matters in the audit reports of Saudi banks listed on the stock exchange, focusing on the size of audit firms and economic conditions with including the impact of the COVID-19 pandemic. Methods: The study employed a quantitative methodology with utilizing a sample of ten Saudi banks during the period 2015-2024. This methodology combined the use of a dynamic panel model to measure the composite impact of bank-related variables and economic variables on the level of disclosure. Additionally, a composite index for key matters disclosure was designed, incorporating text length, risk weight, and the number of key matters. Results: The results showed that affiliation with the Big Four firms positively impacts the quality of disclosure, while economic growth leads to an increased level of disclosure of material risks. Furthermore, the results indicated that the COVID-19 pandemic resulted in a significant increase in disclosure, while the impact of inflation on the level of key matters disclosure was limited. Conclusions: The study also recommends enhancing the level of disclosure of KAMs by integrating quantitative tools that highlight financial risks, while taking into account aggregate effects on disclosure, especially in situations of uncertainty arising from global crises.