TY - JOUR
T1 - Determinants of Accounts Level and Entity Level Key Audit Matters
T2 - Further Evidence
AU - Bepari, Md Khokan
AU - Mollik, Abu Taher
AU - Nahar, Shamsun
AU - Islam, Mohammad Nazrul
N1 - Publisher Copyright:
© 2022 European Accounting Association.
PY - 2022/4/21
Y1 - 2022/4/21
N2 - We examine firm-specific factors (firm life cycle, firm size, complexity, litigation risks, intangible intensity), audit-specific factors (audit firm, audit fee, non-audit fee) and auditor-specific factors (auditor’s experience, specialization, gender and accounting degree), as determinants of the number of KAMs, account-level KAMs (ALKAMs), and entity-level KAMs (ELKAMs) for a sample of Australian firms. Our findings suggest that KAMs’ disclosure varies based on client firm-specific characteristics, audit firm-specific characteristics and audit partners’ characteristics. We find that firms’ life cycle, size, complexity, intangible intensity, audit firm identity, audit fees, auditors’ specialization, experience, gender and accounting degree affect the number and types of KAMs’ disclosure. Our findings negate the concern of stereotyping in KAMs disclosures and suggest that KAMs’ disclosure varies based on many contextual factors. Our findings have important implications for audit firms, corporate boards, investors and regulators.
AB - We examine firm-specific factors (firm life cycle, firm size, complexity, litigation risks, intangible intensity), audit-specific factors (audit firm, audit fee, non-audit fee) and auditor-specific factors (auditor’s experience, specialization, gender and accounting degree), as determinants of the number of KAMs, account-level KAMs (ALKAMs), and entity-level KAMs (ELKAMs) for a sample of Australian firms. Our findings suggest that KAMs’ disclosure varies based on client firm-specific characteristics, audit firm-specific characteristics and audit partners’ characteristics. We find that firms’ life cycle, size, complexity, intangible intensity, audit firm identity, audit fees, auditors’ specialization, experience, gender and accounting degree affect the number and types of KAMs’ disclosure. Our findings negate the concern of stereotyping in KAMs disclosures and suggest that KAMs’ disclosure varies based on many contextual factors. Our findings have important implications for audit firms, corporate boards, investors and regulators.
KW - account-level key audit matters
KW - audit characteristics
KW - auditor characteristics
KW - entity-level key audit matters
KW - firm characteristics
KW - key audit matters
UR - http://www.scopus.com/inward/record.url?scp=85129581609&partnerID=8YFLogxK
U2 - 10.1080/17449480.2022.2060753
DO - 10.1080/17449480.2022.2060753
M3 - Article
AN - SCOPUS:85129581609
SN - 1744-9480
VL - 19
SP - 397
EP - 422
JO - Accounting in Europe
JF - Accounting in Europe
IS - 3
ER -