The Informational Value of Key Audit Matters in the Auditor's Report: Evidence from an Eye-Tracking Study

Sirois, Louis‐Philippe; Bédard, Jean; Bera, Padmalochan

doi:10.2139/ssrn.2469905

Cited by 54 publications

(91 citation statements)

References 45 publications

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“…Recent empirical-quantitative research has not focused on the determinants of KAM disclosures, like the link between WOAC and auditor reporting. According to Sirois et al (2017), users relied on KAM to focus attention on particular parts of the financial statements. Some experimental studies have analyzed the impact on users' decision-making when evaluating financial statements (Christensen et al, 2014;Kachelmeier et al, 2017;Sirois, Bédard, & Bera, 2017).…”

Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

“…Instead, former studies have concentrated on the consequences of KAM disclosures with experimental and archival designs. Some experimental studies have analyzed the impact on users' decision-making when evaluating financial statements (Christensen et al, 2014;Kachelmeier et al, 2017;Sirois, Bédard, & Bera, 2017). A second-order effect on users' decisions, primarily through the effect on users' liability assessments, has also been analyzed (Backof, Bowlin, & Goodson, 2017;Brasel, Doxey, Grenier, & Reffett, 2016;Brown, Majors, & Peecher, 2016;Gimbar, Hansen, & Ozlanski, 2016;Kachelmeier et al, 2017).…”

Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

“…However, the effect was not what regulators might have expected. According to Sirois et al (2017), users relied on KAM to focus attention on particular parts of the financial statements. Also, according to Christensen et al (2014), users were less likely to consider the company as an investment in the presence of KAM.…”

Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

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Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

Velte

2018

Corp Soc Responsibility Env

113

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This paper investigates the relationship between the percentage of women on audit committees (WOAC) in UK firms and auditors' disclosures on key audit matters (KAM) from 2014 to 2015.The results show that firms with a higher percentage of WOAC have higher readability of KAM disclosures as measured by the Flesch reading ease index. By modifying our dependent and independent variables, sensitivity tests (Blau index and Fog readability index) also corroborate the expectation that WOAC will lead to greater readability of KAM disclosures, with stricter monitoring activities and greater risk avoidance in the audit committee. We provide a useful contribution to recent empirical sustainable corporate governance literature for practices, researchers, and regulators.

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Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

Section: Prior Research On Gender Diversity In the Boardroom And Kamentioning

confidence: 99%

See 1 more Smart Citation

Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

Velte

2018

Corp Soc Responsibility Env

113

View full text Add to dashboard Cite

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“…[7][8] on information not within the current scope of the financial statement audit (part E) (IAASB, May 2011, pp. [12][13][14][15][16][17][18][19][20][21][22][23][24]. Next to the structure of the report, use of technical language, and the location of the auditor's opinion, a significant fragment of upcoming change represents an auditor commentary on significant matters.…”

Section: The Recent Evolution Of Auditor Reportingmentioning

confidence: 99%

The Key Audit Matters as an Element of the Independent Auditor’s Report – A Booster to the Corporate Governance

Tušek

Ježovita

2018

iele

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In 2009 the International Auditing and Assurance Standards Board (IAASB) initiated a project entitles 'Auditor reporting' with an objective to appropriately enhance the communicative value and relevance of the audit report. This act of the IAASB can be considered as a starting point in the revision of the International Standards on Auditing related to the structure and content of the audit report. After perennial consultations, dialogs, numerous comments received, on January 2015, the IAASB issued six revised and one new Standard related to the auditors reporting. Revised and new Standards become effective for audits of financial statements for periods ending on or after December 15, 2016. The most significant content change relates to the new Standard ISA 701 Communicating Key Audit Matters in the Independent Auditor's Report. The intention of including new paragraph(s) in the report, related to the key audit matters (KAMs), was to enhance its communication value by providing greater transparency on performed audits, and to give insights to stakeholders to the matters that, in the auditor's professional judgement, were of the most significance. The subject of the paper is to analyse changes in the structure and content of the new audit report, with a focus to the new element -KAMs. Related to the research problem, the objective of the paper will be to investigate improvements of the new audit reports, research an average number of KAMs included in one report, and make conclusions about differences between Croatian statutory auditors in prepar-* 242 ing the audit report. The research covers audit reports of Croatian listed companies (public interest entities -PIEs) for 2016 and 2017. Research methodology includes using appropriate statistical methods as descriptive statistics, non-parametric tests, principal component analysis, and clustering.

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“…For research concerning KAM, see Christensen, Glover, and Wolfe (), Simnett and Huggins (), Kachelmeier, Schmidt, and Valentine (), Sirois, Bédard, and Bera (), Brasel et al (), Boolaky and Quick () and Gimbar, Hansen, and Ozlanski ().…”

mentioning

confidence: 99%

The New European Audit Regulation Arena: Discussion of New Rules and Ideas for Future Research

2016

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The Informational Value of Key Audit Matters in the Auditor's Report: Evidence from an Eye-Tracking Study

Cited by 54 publications

References 45 publications

Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

The Key Audit Matters as an Element of the Independent Auditor’s Report – A Booster to the Corporate Governance

The New European Audit Regulation Arena: Discussion of New Rules and Ideas for Future Research

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