BOARD CHARACTERISTICS, OWNERSHIP STRUCTURE, AND AUDIT RISK COMMUNICATION THROUGH KEY AUDIT MATTERS: THE MEDIATING ROLE OF OVERLAPPING AUDIT COMMITTEES FROM A RESOURCE DEPENDENCE THEORY PERSPECTIVE

Purpose - This study examines how board characteristics and ownership structure shape audit risk communication through Key Audit Matters (KAM) disclosure, with particular attention to the mediating and coordinating role of Overlapped Audit Committees (OvAC). Drawing on Resource Dependence Theory, the study views corporate governance not merely as a monitoring mechanism but also as a source of knowledge, expertise, information access, and coordination capacity that may influence the quality and contextual richness of audit risk communication. Methodology - The study employs a qualitative empirical approach based on document analysis and cross-case comparison of Indonesian manufacturing firms over the 2022–2024 period. Data are derived from publicly available annual reports, corporate governance disclosures, audit committee information, and Key Audit Matters reported in independent auditor reports. The analysis combines thematic analysis with cross-case comparison to identify recurring patterns linking board characteristics, ownership structure, OvAC, and the characteristics of KAM-based audit risk communication. Findings - The findings indicate that audit risk communication through KAM is associated with the broader configuration of corporate governance resources rather than with audit risk alone. Firms characterised by stronger combinations of board independence, relevant expertise, and diversity tend to demonstrate more context-specific and informative KAM disclosures. Ownership structure also appears to shape monitoring incentives and transparency orientation. The cross-case analysis further suggests that OvAC may function as an information-coordination mechanism by facilitating knowledge sharing and information integration across governance functions. Conversely, limited coordination and highly concentrated governance structures tend to be associated with comparatively more standardised and less contextually detailed risk communication. Discussion and Implications - The study extends the application of Resource Dependence Theory to the KAM literature by explaining how governance resources can be transformed into audit risk communication through information integration and coordination. The findings suggest that the effectiveness of KAM disclosure should be assessed not only from the number of matters disclosed but also from its specificity, firm relevance, explanation of management judgment and uncertainty, and description of audit responses. Practically, the study highlights the importance of strengthening board expertise, governance coordination, and the effective functioning of audit committee structures to improve the transparency and informativeness of audit risk communication. For regulators and standard setters, the findings provide evidence that the quality of KAM communication is embedded within a broader corporate governance ecosystem.