Does the audit committee member’s accounting experience associated with key audit matter types?

Authors: Aboud, A., Elbardan, H., El-Helaly, M. and Kotb, A.

Journal: Review of Quantitative Finance and Accounting

eISSN: 1573-7179

ISSN: 0924-865X

DOI: 10.1007/s11156-024-01276-2

Abstract:

Using a narrow view of accounting experience, this study examines the relationship between accounting experience on audit committees (ACs) and key audit matters (KAMs) in the UK. In contrast to extant research, this study distinguishes between different types of accounting experience on AC and how this relates to different types of KAMs. We also address the effects of the interplay between accounting and supervisory experiences on KAMs. Using a sample from FTSE 350, we provide robust evidence that accounting experience on ACs is an important driver of extended audit reporting quality. Moreover, we find evidence that different types of accounting experience have mostly similar effects on different types of KAMs. Further, we show that AC members with prior supervisory experience complement the role of accounting experience. Nevertheless, this complementary relationship varies between types of KAMs. Overall, our study offers important insights regarding how accounting and supervisory experience on ACs is associated with the quality of KAMs reported in the extended reports. Our results are robust to alternative sampling, model specifications, and endogeneity concerns.

Source: Scopus

Does the audit committee member's accounting experience associated with key audit matter types?

Authors: Aboud, A., Elbardan, H., El-Helaly, M. and Kotb, A.

Journal: REVIEW OF QUANTITATIVE FINANCE AND ACCOUNTING

eISSN: 1573-7179

ISSN: 0924-865X

DOI: 10.1007/s11156-024-01276-2

Source: Web of Science (Lite)

Does the audit committee member’s accounting experience associated with key audit matter types?

Authors: Elbardan, H., Aboud, A., El‑Helaly, M. and Kotb, A.

Journal: Review of Quantitative Finance and Accounting

Publisher: Springer Nature

ISSN: 0924-865X

DOI: 10.1007/s11156-024-01276-2

Abstract:

Using a narrow view of accounting experience, this study examines the relationship between accounting experience on audit committees (ACs) and key audit matters (KAMs) in the UK. In contrast to extant research, this study distinguishes between different types of accounting experience on AC and how this relates to different types of KAMs. We also address the effects of the interplay between accounting and supervisory experiences on KAMs. Using a sample from FTSE 350, we provide robust evidence that accounting experience on ACs is an important driver of extended audit reporting quality. Moreover, we f ind evidence that different types of accounting experience have mostly similar effects on different types of KAMs. Further, we show that AC members with prior supervisory experience complement the role of accounting experience. Nevertheless, this complementary relationship varies between types of KAMs. Overall, our study offers important insights regarding how accounting and supervisory experience on ACs is associated with the quality of KAMs reported in the extended reports. Our results are robust to alternative sampling, model specifications, and endogeneity concerns.

Source: Manual