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13:30 ～ 15:00

論題

Auditors' Reporting of Boilerplate KAMs and Audit Effort

報告者

Lina (Zixuan) LI (The University of Auckland Business School)

概要

We examine the determinants of disclosing repeated and boilerplate content in Key Audit Matters (KAMs) by auditors and investigate whether boilerplate KAMs are indicative of lower audit effort. Using data from New Zealand, we find evidence of repeated and boilerplate KAM content being disclosed at the client level since the reporting requirement was introduced. In multivariate analyses, we find that client business risk and auditor reputation are negatively associated with auditors' reporting of boilerplate KAMs. Furthermore,we find that auditors exert lower effort on audits for which they report a higher level of boilerplate content in KAMs. Our study provides novel findings that contribute to auditors' voluntary reporting of KAMs and provide important practical implications for investors and regulators.