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This paper aims to examine the perspectives of auditors, regulators and financial report preparers on the effects of key audit matters (KAMs) reporting on audit effort, fees, quality and report transparency.

The authors conducted 21 semi-structured interviews with stakeholders (13 Audit Partners, 5 Chief Financial Officers and 3 regulators) and thematically analysed the interviews. They use the frame of “Paradox of Transparency” to explain the findings.

Auditors perceive that the overall quality control of their audits has improved both in the planning and execution stages, and such improvement can mostly be attributed to the coercive pressures from professional bodies and regulators. Nevertheless, audit fee remains unchanged. Auditors disclose industry generic items and descriptions of KAMs, sometimes masking the real problem areas of the clients. Even after improving the performative audit quality, transparency of audit reporting has not improved. Issues that warrant going concern qualifications or audit report modifications are now reported as KAMs. Hence, KAMs reporting might make the audit report less transparent.

Localised audit environments and institutions affect the transparency of KAMs reporting. Without attention to corporate governance and auditors’ independence issues, paradoxically, performative improvement in audit quality (due to the KAMs reporting requirement) does not enhance the transparency of audit reports.

To the best of the authors’ knowledge, this study is the first to provide field-level evidence in Bangladesh and other developing countries about the perceptions of auditors, financial report preparers and regulators on the effects of KAMs reporting on audit efforts, fees, quality and report transparency.

This study aims to examine the extent to which external auditors (EAs) use the work of the internal audit function (IAF) based on the purpose of its primary activities. The authors rely on attribution theory, which suggests that individuals search for meaning when an event occurs. In this setting, the authors explore how the overall (assurance vs advisory) or specific (e.g. risk management and evaluating internal controls) focus of IAF activities influences perceived EA reliance on the IAF’s work.

The authors first explore the research question with data extracted from a broad, longitudinal survey conducted triennially by the national chapters of the Institute of Internal Auditors in Austria, Germany and Switzerland. The data includes responses from 2014, 2017 and 2020 administrations of the survey. The authors conduct a parallel survey with practicing EAs attending two training sessions of a European office of a global network firm. Hypotheses were tested using ordered logistic regression.

Among the chief audit executive (CAE) participants, the authors observe that a balanced or primarily assurance-related purpose of the IAF, relative to a primarily advisory-related purpose, is associated with higher perceived EA reliance. The authors observe similar perceptions of the extent of reliance among the EA participants.

With a unique data set of practicing internal auditors from three countries, coupled with a sample of EAs, to the best of the authors’ knowledge, this study is the first to examine differences in EA reliance across the IAF’s primary roles. The study relies on data from three European countries, which differs from prior EA reliance literature with a largely North American focus. Further, comparison between perceptions of EAs and CAEs is a novel approach and this paper’s findings suggest that perceptions of CAEs could be a reliable proxy for EA-intended behavior.

The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen while the number of restatements has decreased. This could indicate an improvement in financial reporting quality. It could also indicate the use of a type of stealth restatement for opportunistic purposes. These less prominent restatements are more likely to go undetected and could perpetuate opportunistic disclosure and mitigate the likelihood of unfavorable market reactions.

The authors use a two-stage multivariate regression analysis to examine the relationship between NAS and the reporting of an OOPA. The authors use prior research on NAS to guide the model development. The authors perform several robustness checks including different types of NAS and different characteristics of OOPAs.

The results indicate that NAS has a significantly negative association with the existence of OOPAs. The core findings suggest that NAS does not impair auditor independence. Rather, greater amounts of NAS may contribute to knowledge spillover, which leads to higher financial reporting and audit quality. The results are robust to several additional tests.

The results raise interesting implications for regulators, executives, auditors, investors and future research. The authors provide insight into the relationship between NAS and auditor independence.

To the best of the authors’ knowledge, prior research has not considered the effect of NAS on OOPAs. The authors contribute to the literature by providing evidence that OOPAs, a form of stealth restatements, is an important consideration in audit quality research.

This study aims to examine the effect of audit client’s use of blockchain (BC) on auditing accounting estimates (AEs), especially the inherent risk (IR), control risk (CR) and collection of audit evidence.

The study used a questionnaire to collect data for a sample of 249 auditors. A partial least squares method is used to test the hypotheses.

The results showed positive relationship between audit client’s use of BC and both IR and CR when auditing AEs. The results also showed the BC improves the collection of sufficient and appropriate audit evidence when auditing AEs.

This study did not address all the risks associated with auditing AEs, including fraud, detection, sampling and nonsampling risks, and the procedures and tests for auditing AEs.

There are several implications of this research, including that it informs the revision of auditing standards and guidelines to correspond with successive technological changes, which subsequently clarify the roles and responsibilities of auditors, and the study findings will also cause changes to the design and form of audit procedures so as to obtain sufficient and appropriate audit evidence.

To the best of the authors’ knowledge, this study is considered the first of its kind that deals with the effects of audit client’s use of BC on audit AEs in the Middle East and North Africa region. This study also presented different sets of measures as proxies for measuring IR, CR and AE.

This paper aims to examine the impact of the assurance and advisory role of internal audit (ADRIA) on organisational, human and technical proactive measures to enhance cybersecurity (CS).

The questionnaire was used to collect data for 97 internal auditors (IAu) from the Gulf Cooperation Council countries. The authors used partial least squares (PLS) to test the hypotheses.

The results show a positive effect of the ADRIA on each of the organisational proactive measures, human proactive measures and technical proactive measures to enhance CS. The study also found a positive effect of the confirmatory role of IA on both human proactive measures and technical proactive measures to enhance CS. No effect of the confirmatory role of IA on the organisational proactive measures is found.

This study focused on only three proactive measures to enhance CS, and this study was limited to the opinions of IAu. In addition, the study was limited to using regression analysis according to the PLS method.

The results of this study show that managers need to consider the influential role of IA as a value-adding activity in reducing CS risks and activating proactive measures. Also, IAu must expand its capabilities, skills and knowledge in CS auditing to provide a bold view of cyber threats. At the same time, the institutions responsible for preparing IA standards should develop standards and guidelines that help IAu to play assurance and advisory roles.

To the best of the authors’ knowledge, this is the first study of its kind that deals with the impact of the assurance and ADRIA on proactive measures to enhance CS. In addition, the study determines the nature of the advisory role and the assurance role of IA to strengthen CS.

This study asks whether external auditors enable the transfer of policies to the United Nations organizations that they audit and, if so, what types of policies are transferred.

The empirical research is based on a content analysis of 512 external auditor recommendations from 28 pre- and post-accrual reports of 14 UN bodies.

We find that external auditors do enable policy transfer and that such involvements may, at times, veer into non-neutral policy spaces.

We did not analyze all UN organizations with accruals-based accounting. We also did not engage in a longer longitudinal study.

Our findings raise new questions about international organization accountability, the technocratic and policy-specific influences of external auditors, and open a debate about whether attempted policy transfers can be neutral.

The world’s largest group of international organizations is affiliated with the UN. External auditors help ensure that member-state monies are appropriately utilized. Our study is the first to compare pre- and post-accrual external auditor recommendations for 14 UN bodies. It is also the first to notate and study the attempted policy transfers from external auditors to the audited UN bodies.

The study aims to analyse the role of digitisation in accounting in enhancing the overall effectiveness of accounting functions. To achieve this, the study provides empirical evidence from the stakeholder’s perspective of digitisation of accounting, auditing, reporting and regulatory compliance procedures.

The study has applied a quantitative approach to identify the thoughts of auditors, accountants and academicians on the impact of digitalised accounting applications on accounting functions. The data was collected by administering an empirical study and a sample of 482 professionals from the accounting, auditing and academic sectors. To analyse and interpret data descriptive statistics, structured equation modelling and mediation analysis has been used.

The finding of the study signifies the relevance of digitalised accounting applications in accounting functions and reveals that there is a significant impact of digitalisation on accounting, auditing, reporting and regulatory compliance aspects of accounting functions. The outcome of the study explores that a digitalised accounting system reduces possible errors and improves the accuracy and transparency of the system.

The study highlighted the importance of developing new methods and techniques that can be used in practice. This indirectly advocates the inclusion of such concepts in accounting curricula to emphasise the need to understand the challenges and opportunities created by digitisation. Furthermore, the study will become a motivation to scholars who intend to explore different areas through which new technologies can be adopted to transform traditional accounting systems.

The contributions of the current study have implications that the adoption of digitised accounting enhances economic efficiency through a reduction in accounting costs, and enhanced accuracy that leads to the elimination of penalties and litigations for non-compliance with regulatory authorities. This indirectly impacts positively on the financial health of the business organisations and economies at large. This implication becomes greater evidential support to the organisations which are yet to plan the adoption and implementation of digital tools in their organisation for accounting functions.

Digitalisation is a relevant part of the accounting function to improve efficiency and accuracy. Since accounting and auditing practitioners struggle to control the accuracy and efficiency of transactions. Furthermore, the outcome of the study assists organisations in gaining real-time access to financial data, transforms workflows and empowers management to make timely informed sound decisions, optimise resource allocation, efficient regulatory compliance and so on.

This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit clients and the risk of material misstatements, including inherent risk and control risk. In particular, the authors study the mediating effects of board characteristics such as board size, independence and gender diversity.

Based on a sample of 100 audit clients listed on the FTSE 100 from 2015 to 2021, this study uses structural equation modelling to test the research objectives.

The findings indicate a significant and negative association between disruptive technology adoption by audit clients and inherent risk. However, there is no significant evidence observed for control risk. The utilisation of disruptive technology by the audit client has a significant impact on the board characteristics, resulting in an increase in board size, greater independence and gender diversity. The authors also find strong evidence that board independence mediates the association between disruptive technology usage and both inherent risk and control risk. In addition, board size and gender exhibit distinct and differential mediating effects on the association and across the two types of risks.

The study reveals that the significant role of using disruptive technology by audit clients in reducing the risk of material misstatements is closely associated with the board of directors, which makes audit clients place greater emphasis on the construction of effective corporate governance.

This study offers essential primary evidence that can assist policymakers and standard setters in formulating guidance and recommendations for board size, independence and gender quotas, ensuring the enhancement of effective governance and supporting the future of audit within the next generation of digital services.

With respect to relevant stakeholders, it is imperative for audit clients to recognise that corporate governance represents a fundamental means of addressing the ramifications of applying disruptive technology, particularly as they pertain to inherent and control risks within the audit client.

This study contributes to the existing literature by investigating the joint impact of corporate governance and the utilisation of disruptive technology by audit clients on inherent risk and control risk, which has not been investigated by previous research.

The study aims to use bibliometric and scientometric analysis to conduct a detailed investigation on the impact of disruptive technologies in accounting and reporting literature. To draw both academics and practitioners through accelerated research activities, the study also aims to look into the significance of these disruptive technologies, their potential and the opportunities they present for the accounting profession.

With the use of the Scopus database and a combination of accounting, reporting, auditing and technology-related keywords, 1660 research articles published between 2008 and 2023 were included in the sample. To provide graphical analysis of bibliometric data and visualize research findings such as bibliographic coupling, co-citation and keyword co-occurrence, this study used the R-biblioshiny and VOSViewer tools.

The findings demonstrate a growth in scholarly interest in the study’s area, particularly in recent years. The bibliometric analysis focuses on three key uses and applications of technology in the accounting and auditing professions: the adoption of continuous auditing and monitoring in the audit profession, the use of software tools in the audit and accounting professions and the connections between information systems and audit.

This study contributes to the literature by examining current research trends on the use of technology in the accounting and reporting professions, identifying gaps in the literature and, most importantly, proposing a research agenda for the field. This study’s data came entirely from English-language articles and reviews in the Scopus database. It also considers studies that are directly relevant to the use of technology in accounting and reporting.

This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also ascertained the interactive effect of woman leadership and gender diversity on audit committee on audit fee.

The study applied ordinary least square and fixed-effect estimators on the data of 21 universal banks in Ghana for the period 2010–2021 to estimate the empirical results.

It is revealed that under the leadership of women (woman CEO and board gender diversity), higher external audit quality is ensured as higher audit fee is paid. Interestingly, it was found that with the presence of women on the audit committee, the integrity of internal controls and internal audit procedures are enhanced, which leads to quality financial reporting, calls for lower audit effort, hence lower audit fee.

The result indicates that firms can rely on the leadership of women in ensuring quality external audit and quality financial reporting, which ultimately helps to minimize the information risk to all stakeholders.

The paper contributes to extant literature by establishing that, under the leadership of women in banking entities from a developing country context, external audit quality and financial reporting are achieved.