Navigating uncertainty: the role of auditor demographics in key audit matters reporting amid COVID-19 in Egypt
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 17 September 2024
Abstract
Purpose
This study aims to explore the auditors’ responses to the COVID-19 pandemic in Egypt, with a focus on how their demographic characteristics – specifically gender, work experience and audit firm size – affect their ability to identify key audit matters (KAMs).
Design/methodology/approach
The study used exploratory factor analysis to develop an index for evaluating auditors’ proficiency in distinguishing KAMs from non-KAMs, followed by multivariate regression analysis to analyze the impact of auditors’ demographics on this ability.
Findings
The study’s findings are significant as they highlight the influence of auditors’ gender and work experience on their capability to correctly classify KAMs. However, the size of the audit firm showed no significant effect on the auditors’ decision-making efficacy in identifying KAMs.
Research limitations/implications
While the study illuminates critical aspects of audit judgment during unprecedented times, it acknowledges limitations, including its geographical focus on Egypt and reliance on self-reported data. The implications stress the need for audit firms and regulators to consider auditors’ demographic characteristics when formulating policies to enhance audit quality and reliability during crises.
Originality/value
This research breaks new ground in the auditing literature by shedding light on the distinct role of auditor demographics in shaping audit opinion during crises. It is one of the pioneering studies to quantitatively assess the impact of auditors’ gender, experience and firm size on KAM identification in a global health crisis. It provides a unique perspective on audit practices in emerging economies.
Keywords
Acknowledgements
Data availability statement: Data is available on request from the authors.
Funding: The authors declared no funding was received for this article.
Conflict of interest disclosure: The authors declared no potential conflicts of interest.
Citation
Moubarak, H. and Elamer, A.A. (2024), "Navigating uncertainty: the role of auditor demographics in key audit matters reporting amid COVID-19 in Egypt", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-04-2024-0183
Publisher
:Emerald Publishing Limited
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