Author:
Murphy Peter,McLaughlin Craig,Elamer Ahmed A.
Abstract
Purpose
The purpose of this study is to analyze the influence of the COVID-19 pandemic on audit fees and the reporting of key audit matters (KAMs). Additionally, this study also looks into potential differences in the behavior of male and female audit partners during this period, adding to the existing research on gender's effect on different elements of the audit process.
Design/methodology/approach
This study used a sample of all FTSE 350 firms from before the COVID-19 pandemic and during the pandemic. It analyzed the data using Ordinary Least Squares regression analysis to test its hypotheses.
Findings
This paper provides early evidence on the impact of the COVID-19 pandemic on audit fees and KAM disclosures in the UK. The results of this study show an increase in audit fees during the pandemic and greater detail in the reporting of KAMs, with no significant difference between male and female audit partners. These findings will be of interest to audit firms and regulators as they assess the performance of auditors during the pandemic and evaluate the expanded audit report's effectiveness in providing sufficient information to financial statement users.
Originality/value
This study provides first-of-its-kind empirical evidence on how auditors in the UK reacted to the COVID-19 pandemic. The findings of this study will be of interest to audit firms, regulators, such as the Financial Reporting Council, and other stakeholders as they evaluate the performance of auditors during the crisis period. The results will help regulators assess the effectiveness of the expanded audit report in providing sufficient information during a time of heightened risk and scrutiny.
Subject
Economics, Econometrics and Finance (miscellaneous),Accounting,Management Information Systems
Reference73 articles.
1. Female audit partners and extended audit reporting: UK evidence;Journal of Business Ethics,2021
2. On the likelihood and type of merger and acquisition in the US listed companies: the role of females on the board;International Journal of Accounting and Information Management,2022
3. Do assurance and assurance providers enhance COVID-related disclosures in CSR reports? An examination in the UK context;International Journal of Accounting and Information Management,2021
4. Auditing in times of social distancing: the effect of COVID-19 on auditing quality;International Journal of Accounting and Information Management,2020
5. The impact of the global financial crisis on audit and non-audit fees;Managerial Auditing Journal,2015
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献