Real Effects of Reporting Key Audit Matters on Auditors' Judgment of Accounting Estimates

Asbahr, Karsten; Ruhnke, Klaus

doi:10.2139/ssrn.3069755

Cited by 6 publications

(2 citation statements)

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“…La importancia de evaluar la continuidad de las empresas ha sido una preocupación no sólo para los legisladores sino también para la investigación académica. Con posterioridad al trabajo inicial de McKee (1976) se han publicado estudios que abordaron la armonización legislativa internacional (Cordos y Fülöp, 2015;Kusar, Taffler y Tan, 2017;Martin, 2000); la importancia de la calidad de las opiniones de auditoría (Mo, Rui y Wu, 2015;Myers et al, 2014); los efectos de una opinión auditora going concern (Citron, Taffler y Jinn-Yang;Gallizo y Saladrigues, 2016;Khan, Lobo y Nwaeze, 2017;O'Reilly, 2010); la influencia de la simetría y la eficiencia de la información que dispone el auditor (Ittonen, Tronnes y Wong, 2017;Gerakos, Hahn, Kovrijnykh y Zhou, 2016), y el desarrollo de diversos modelos para predecir las opiniones de auditoría calificadas por going concern (Bellovary, Giacomino y Akers, 2007;Goo et al, 2016;Koh y Low, 2004).…”

Section: Literatura Previaunclassified

Predicción de opinión going concern en clubes de fútbol: evidencia para la liga española

Alaminos

Castillo

Fernández

2019

CyA

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<p>El principio contable de gestión continuada (going concern) ha sido foco de atención de la investigación financiera en las últimas décadas, y ha dado lugar al desarrollo de modelos de predicción de opiniones de auditoría calificadas por going concern que ayudan a evaluar la continuidad de las empresas. Dichos modelos se han centrado exclusivamente en empresas industriales y financieras. Sin embargo, no se ha creado un modelo específico que recoja las especiales características de la industria del fútbol. Dado que recientemente los órganos de gobierno de la industria del fútbol han aumentado el control financiero de los clubes, como es el caso de la UEFA con la aprobación del Reglamento de Fair Play Financiero, y exigen un pronunciamiento sobre going concern en las cuentas anuales de los clubes, parece necesario disponer de un modelo adaptado a las características propias de esta industria. El presente trabajo proporciona un modelo exclusivo de predicción de opiniones de auditoría calificadas por going concern en la industria del fútbol con una precisión que supera el 95%. También ofrece una visión de los desafíos a los que se enfrenta la industria del fútbol en materia financiera, ayudando a los distintos grupos de interés a evaluar las expectativas de continuidad de los clubes.</p>

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Section: Literatura Previaunclassified

Predicción de opinión going concern en clubes de fútbol: evidencia para la liga española

Alaminos

Castillo

Fernández

2019

CyA

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“…To address the aim of our study, reflecting the practical and theoretical dichotomy regarding the potential effect of KAM on auditor judgment performance, we use a competing 2 To our knowledge, only the "Basis for Conclusions: Reporting on Audited Financial Statements -New and Revised Auditor Reporting Standards and Related Conforming Amendments" acknowledges the possibility that an additional focus on KAM "to be reported could indirectly result in an increase in professional skepticism and additional attention by the auditor on significant audit risks" (IAASB 2015b, 8). 3 We are only aware of one unpublished working paper that examines whether reporting an accounting estimate as a KAM can influence auditor judgment (Asbahr and Ruhnke 2017). hypotheses approach based on implications of motivated reasoning and goal commitment vs. moral licensing theory.…”

Section: Introductionmentioning

confidence: 99%

Does Considering Key Audit Matters Affect Auditor Judgment Performance?

Ratzinger‐Sakel

Theis

2017

SSRN Journal

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We investigate the impact of considering key audit matters (KAM) on auditor judgment performance and conducted a 2×2 between-subjects experiment based on a goodwill impairment testing case with 73 experienced auditors. We manipulated the two independent variables KAM consideration (present vs. absent) and client pressure (high vs. low). As dependent variables, we captured skeptical judgment and action as different facets of auditor judgment performance. Our results suggest that auditors' reaction to our client pressure manipulation is rather weak. If at all, auditors seem to become slightly more skeptical in their judgments and actions when client pressure is high, which might suggest that a reasonableness constraint has been triggered. Furthermore, we find that auditors exhibit significantly less skeptical judgment when KAM consideration is present than when KAM consideration is absent. This suggests that, when considering KAM, auditors are more willing to acquiesce to their clients' desired accounting treatments due to moral licensing. JEL Classification: M42

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Exploring the impact of key audit matters on audit report lag: insights from an emerging market

Alawadhi,

Alrefai,

Alqassar

2024

JEAS

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PurposeThe purpose of this study is to examine the impact of key audit matters (KAMs) on the timeliness of financial statement reporting, measured as audit report lag (ARL), within the context of Kuwait's evolving financial market.Design/methodology/approachUsing a sample of 136 unique firms and 841 firm-year observations over the period 2016–2022, the study employs a random effects model on a panel data set to examine the correlation between the number and type of KAMs disclosed in audit reports and the length of ARL. In addition, we employ sub-sample analysis and two-stage least squares (2SLS) regression to enhance overall reliability.FindingsThe results indicate a positive relationship between an increased number of reported KAMs and the length of ARL. Specific categories of KAMs, such as those related to investments and the implementation of new standards, also significantly impact the delay. Additionally, the findings reaffirm the importance of several determinants of ARL, which is consistent with prior research.Originality/valueThis study is among the first to offer new insights by examining the relationship between both the number and specific types and/or categories of KAMs on ARL in emerging markets.

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Real Effects of Reporting Key Audit Matters on Auditors' Judgment of Accounting Estimates

Cited by 6 publications

References 0 publications

Predicción de opinión going concern en clubes de fútbol: evidencia para la liga española

Predicción de opinión going concern en clubes de fútbol: evidencia para la liga española

Does Considering Key Audit Matters Affect Auditor Judgment Performance?

Exploring the impact of key audit matters on audit report lag: insights from an emerging market

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