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Investigating the Impact of Disclosing Key Audit Matters on Users' Confidence and the Responsibility Attributed to Auditors
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Melika Baraz   , Mohammadhossein Ghaemi * , Abasali Daryaee , Seyedmostafa Alavi |
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Abstract: (29 Views) |
In recent years, audit reports, whose primary objective is to provide assurance regarding the accuracy of financial statements prepared by company management, have faced criticism concerning their format, content, and informational value. In response to these criticisms, the International Auditing and Assurance Standards Board (IAASB) introduced International Standard on Auditing (ISA) 701. This standard requires auditors to disclose "Key Audit Matters" (KAMs) in their reports. Following the mandatory implementation of this disclosure requirement in audit reports of Iranian companies, the aim of this study is to examine the impact of this requirement on the confidence level of users in financial statements and the degree of responsibility attributed to auditors by users. To achieve this, an experimental study was conducted, collecting data from 45 financial analysts through a questionnaire. The data were analyzed using covariance, variance, and paired t-tests. The results revealed that the disclosure or non-disclosure of Key Audit Matters in the independent auditor's report does not lead to a significant change in the confidence level of users. Furthermore, if users become aware of a material misstatement in the financial statements after the issuance of the audit report, whether the auditor disclosed the misstatement in the KAM section of the audit report or not does not affect the level of responsibility users attribute to the auditor for the misstatement.
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| Keywords: Key Audit Matters (KAMs), Experimental Method, User Assurance Level, Auditor's Responsibility |
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Full-Text [PDF 929 kb]
(18 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2024/06/30 | Accepted: 2025/03/2 | Published: 2026/09/1
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