Determinants of Accounts Level and Entity Level Key Audit Matters: Further Evidence

Md Khokan Bepari, Abu Taher Mollik, Shamsun Nahar, Mohammad Nazrul Islam

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)397-422
Number of pages26
JournalAccounting in Europe
Volume19
Issue number3
DOIs
Publication statusPublished - 21 Apr 2022

Fingerprint

Dive into the research topics of 'Determinants of Accounts Level and Entity Level Key Audit Matters: Further Evidence'. Together they form a unique fingerprint.

Cite this