This study examines how corporate board features and auditor characteristics in Bangladesh influence the disclosure of key audit matters(KAM)in annual reports from 2018 to 2021.Using ordinary least squares(OLS)regress...This study examines how corporate board features and auditor characteristics in Bangladesh influence the disclosure of key audit matters(KAM)in annual reports from 2018 to 2021.Using ordinary least squares(OLS)regressions,the study finds that factors such as chair gender,the presence of women on the board,audit committee(AC)size,auditor tenure,and client-auditor relationship significantly affect KAM disclosure.However,AC expertise,family CEO succession,and board political connections do not have significant effects.Notably,having a family member CEO with a long-tenured auditor has a negative association with KAM disclosure,while a politically connected family CEO has a positive association with such disclosures.Additionally,Big-4 auditors of important clients are negatively associated with KAM disclosure.展开更多
Audit practice is a team effort led by signing auditors.We examine the impact of the heterogeneity of signing auditors’audit-firm serving experiences on the disclosure of key audit matters(KAMs).Auditors with more he...Audit practice is a team effort led by signing auditors.We examine the impact of the heterogeneity of signing auditors’audit-firm serving experiences on the disclosure of key audit matters(KAMs).Auditors with more heterogeneous serving experiences demonstrate more adequate KAM disclosure,as evidenced by more KAMs,longer texts and clearer attributions in their disclosures.This effect is influenced by the quality of audit knowledge that auditors accumulate from different serving experiences and the team-and audit-firm-level knowledge integration environment.Furthermore,signing auditors with more diverse service experience tend to improve audit quality,reduce the incidence of restatement or misconduct and enhance the informativeness of financial reports.Our findings enrich the KAM disclosure research and provide insights into audit firms’human resource allocation and internal management.展开更多
Examining Chinese listed companies(2017–2021),we show that key audit matters(KAMs)disclosure exhibits a significant peer effect.We verify a rivalry-based theory of this effect.Audit firms with similar(vs.divergent)re...Examining Chinese listed companies(2017–2021),we show that key audit matters(KAMs)disclosure exhibits a significant peer effect.We verify a rivalry-based theory of this effect.Audit firms with similar(vs.divergent)resource endowments are more likely to mimic peers’KAMs disclosure,particularly when auditors face more intense competition and a more uncertain information environment.Material misstatement risks may dampen the peer effect for less economically significant clients and auditors with more industry specialists,suggesting that this effect reflects auditors’rational cost–benefit trade-off.Finally,the peer effect expands audit market share but reduces KAMs’communication value.Our findings enrich KAMs disclosure research and provide implications for enhancing audit report reforms and the communicative value of KAMs disclosure.展开更多
文摘This study examines how corporate board features and auditor characteristics in Bangladesh influence the disclosure of key audit matters(KAM)in annual reports from 2018 to 2021.Using ordinary least squares(OLS)regressions,the study finds that factors such as chair gender,the presence of women on the board,audit committee(AC)size,auditor tenure,and client-auditor relationship significantly affect KAM disclosure.However,AC expertise,family CEO succession,and board political connections do not have significant effects.Notably,having a family member CEO with a long-tenured auditor has a negative association with KAM disclosure,while a politically connected family CEO has a positive association with such disclosures.Additionally,Big-4 auditors of important clients are negatively associated with KAM disclosure.
基金supported by the National Natural Science Foundation of China(Project Nos.72002231 and 72272167).
文摘Audit practice is a team effort led by signing auditors.We examine the impact of the heterogeneity of signing auditors’audit-firm serving experiences on the disclosure of key audit matters(KAMs).Auditors with more heterogeneous serving experiences demonstrate more adequate KAM disclosure,as evidenced by more KAMs,longer texts and clearer attributions in their disclosures.This effect is influenced by the quality of audit knowledge that auditors accumulate from different serving experiences and the team-and audit-firm-level knowledge integration environment.Furthermore,signing auditors with more diverse service experience tend to improve audit quality,reduce the incidence of restatement or misconduct and enhance the informativeness of financial reports.Our findings enrich the KAM disclosure research and provide insights into audit firms’human resource allocation and internal management.
基金funded by the Shandong Provincial Natural Science Foundation(Grant No.ZR2022MG014)Shandong Social Science Planning Project(Grant No.23CGLJ19).Professional English language editing support provided by AsiaEdit(asiaedit.com).
文摘Examining Chinese listed companies(2017–2021),we show that key audit matters(KAMs)disclosure exhibits a significant peer effect.We verify a rivalry-based theory of this effect.Audit firms with similar(vs.divergent)resource endowments are more likely to mimic peers’KAMs disclosure,particularly when auditors face more intense competition and a more uncertain information environment.Material misstatement risks may dampen the peer effect for less economically significant clients and auditors with more industry specialists,suggesting that this effect reflects auditors’rational cost–benefit trade-off.Finally,the peer effect expands audit market share but reduces KAMs’communication value.Our findings enrich KAMs disclosure research and provide implications for enhancing audit report reforms and the communicative value of KAMs disclosure.
