This thesis provides empirical evidence on the readability of Key Audit Matters (KAMs) and its determinants. The analyses are based on the New Zealand publicly listed companies with its audit reports in 2017 and 2019. This study aims to explore and observe the first and third year of International Standard of Auditing (ISA) 701 implementation as KAM disclosures are made mandatory in the publicly listed entities’ financial statements. First, the readability scores show that it is extremely difficult to read Key Audit Matters in the independent auditors’ reports for NZ publicly listed companies as it requires an education attainment level at least 11th grade level. It is not surprising that expanded reporting allows more complex information being disclosed regardless of the length of the narratives, questioning the effectiveness of the ISA NZ 701 implementation as its main purpose is to effectively communicate to users matters that are of significance material to their decision making. Second, readability scores are significantly different between KAM categories where all KAM types are not easy to read at all and the least difficult section in the audit report was the definition of KAM. This section does little or no variation by year or auditors because the commonality of KAM’s description. Third, the multivariate analyses illustrates that the number of KAMs, fiscal year, and auditors either the Big Four or the non-Big Four audit firms are the determinants of KAM’s readability level. As the quantity of KAM increases, so does the readability scores i.e., it is more difficult to read KAMs. Furthermore, the Big Four firms produce a lower readability level for their audit reports due to the client’s higher business complexity. On the other hand, as auditors become more familiar with KAM disclosures, its readability level would decrease over time. To summarise, the efficacy of KAM’s disclosures to enhance audit report’s communicative value remains inconclusive as it is extremely difficult to read audit report, much less to understand it.