Stakeholders' perception about strengthening the audit report

Tiron-Tudor, Adriana; Cordoș, George Silviu; Fülöp, Melinda Timea

doi:10.1504/ajaaf.2018.091138

Cited by 6 publications

(3 citation statements)

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“…The literature on KAMs mainly focusses on three areas: the effect of KAMs on users’ (investors) decisions or assessments (Christensen et al , 2014; Boolaky and Quick, 2016); their perception of auditors’ responsibility/liability (Backof et al , 2018; Brasel et al , 2016; Gimbar et al , 2015) and related audit fees (Lennox et al , 2018). Some limited prior exploratory studies (Pelzer, 2016; Tiron-Tudor et al , 2018) have used the qualitative methodology to investigate the perceptions of different stakeholders about the KAM reforms. For instance, Tiron-Tudor et al (2018) used comment letters to the IAASB, 2013 exposure draft and reported that respondents agreed with the new audit report structure and the inclusion of the KAMs section in the audit report.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Some limited prior exploratory studies (Pelzer, 2016; Tiron-Tudor et al , 2018) have used the qualitative methodology to investigate the perceptions of different stakeholders about the KAM reforms. For instance, Tiron-Tudor et al (2018) used comment letters to the IAASB, 2013 exposure draft and reported that respondents agreed with the new audit report structure and the inclusion of the KAMs section in the audit report.…”

Section: Literature Reviewmentioning

confidence: 99%

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The perceived impact of the KAM reforms on audit reports, audit quality and auditor work practices: stakeholders’ perspectives

Nguyen

Kend

2021

MAJ

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Purpose The purpose of this study is to understand how the new reforms related to key audit matters (KAM) disclosures in Australia may have impacted audit quality by eliciting the perceptions of key stakeholders in the audit and assurance services market. Design/methodology/approach The study uses a qualitative approach and New Institutional Sociology (NIS) to explain how auditors have responded to the KAM reforms. Interviews were conducted with 20 individuals representing identified groups of stakeholders in the market for audit and assurance services in Australia. Findings The study finds there is little consensus between some stakeholder groups on whether the KAM reforms may have improved audit quality, based on the perceptions shared. The findings conveyed that the auditors and regulators, standard setters acknowledge that KAM disclosures are either costly and/or time-consuming to implement. The Big Four auditors indicate these reforms led to changes mainly around internal consultations and independent reviews, whereas the non-Big Four auditors highlighted increased interactions with audit clients. Originality/value This is one of the first studies to examine the perceived post-implementation impacts on audit quality of the KAM reforms (ISA 701) after the initial two years of implementation and how auditors have responded, explored through the lens of institutional logic.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

The perceived impact of the KAM reforms on audit reports, audit quality and auditor work practices: stakeholders’ perspectives

Nguyen

Kend

2021

MAJ

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“…Meanwhile, some research has confirmed several benefits of the EAR, e.g. increasing the readability and quality of audit reports (Smith, 2023; Li et al , 2019) and providing relevant information for stakeholders’ decision-making (Alves Júnior and Galdi, 2019; Tiron-Tudor et al , 2018; Sneller et al , 2017; Prasad and Chand, 2017; Christensen et al , 2014; Cordoş and Fülöp, 2015). Other research showed the essential impact of EAR on the accuracy and dispersion of analyst forecasts (Hu et al , 2022; Venturini et al , 2022), reduced management misbehaviors (Klueber et al , 2018); improving financial quality (Reid et al , 2019).…”

Section: Results Of Content Analysismentioning

confidence: 99%

Mapping the state of expanded audit reporting: a bibliometric view

Mashayekhi

Dolatzarei

Faraji

et al. 2023

MEDAR

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Purpose This study aims to identify the intellectual structure of expanded audit reporting (EAR), offers a quantitative summation of prominent themes, contributors and knowledge gaps and provides suggestions for further research. Design/methodology/approach This research uses various bibliometric techniques, including co-word and co-citation analysis for EAR science mapping, based on 123 papers from Scopus Database between 1991 and 2022. Findings The results show EAR research is focused on Audit Quality; Auditor Liability and Litigation; Communicative Value and Readability; Audit Fees; and Disclosure. Regarding EAR research, Brasel et al. (2016), article is the most cited paper, Bédard J. is the most cited author, Laval University is the most influential university, The Accounting Review is the most cited journal and USA is the leading country. Furthermore, the results show that in common law countries, in which shareholder rights and litigation risk is high, topics such as disclosure quality and audit litigation have been addressed more; and in civil legal system countries, which usually favor stakeholders’ rights, topics of gender diversity or corporate governance have been more studied. Practical implications This research has practical implications for standard setters and regulators, who can identify important, overlooked and emerging issues and consider them in future policies and standards. Originality/value This paper contributes to the literature by providing a more objective and comprehensive status of the accounting research on EAR, identifying the gaps in the literature and proposing a direction for future research to continue the discussion on the value-relevance of EAR to achieve more transparency and less audit expectation gap.

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UK audit reporting practices in the pre-ISA700 (2015 revision) era

2020

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Given its significance to stakeholders, the process of revising audit reports is an essential subject in today's economic context. This study aims to detail relevant elements of this process by evaluating alterations to and developments of the audit report, as supported by international and regional standard-setters and regulators. To that end, we examine audit reports that have already applied new auditing regulations. This case study approach allows us to highlight UK audit-reporting practices both before and after the ISA 700 was issued and entered practice. Our findings reveal that in terms of content and content positioning, UK companies' audit reports make use of the psychological effects of primacy versus serial position and have done so long before the applicability of the international standard for financial statements published after December 2016.

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Stakeholders' perception about strengthening the audit report

Cited by 6 publications

References 0 publications

The perceived impact of the KAM reforms on audit reports, audit quality and auditor work practices: stakeholders’ perspectives

The perceived impact of the KAM reforms on audit reports, audit quality and auditor work practices: stakeholders’ perspectives

Mapping the state of expanded audit reporting: a bibliometric view

UK audit reporting practices in the pre-ISA700 (2015 revision) era

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