Disclaimer effect of key audit matters in China: negative press coverage and boilerplate

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE Managerial Auditing Journal Pub Date : 2022-12-09 DOI:10.1108/maj-02-2022-3463
Qianqun Ma, Jianan Zhou, Qi Wang
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引用次数: 2

Abstract

Purpose Using China’s key audit matters (KAMs) data, this study aims to examine whether negative press coverage alleviates boilerplate KAMs. Design/methodology/approach This study uses Levenshtein edit distance (LVD) to calculate the horizontal boilerplate of KAMs and investigates how boilerplate changes under different levels of the perceived legal risk. Findings The findings indicate that auditors of firms exposed to substantial negative press coverage will reduce the boilerplate of KAMs. This association is more significant for auditing firms with lower market share and client firms with higher financial distress. Additionally, the authors find that negative press coverage is more likely to alleviate the boilerplate disclosure of KAMs related to managers’ subjective estimation and material transactions and events. Furthermore, the association between negative press coverage and boilerplate KAMs varies with the source of negative news. Originality/value The findings suggest that upon exposure to negative press coverage, reducing the boilerplate of KAMs has a disclaimer effect for auditors.
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中国关键审计事项的免责声明效应:负面新闻报道和样板
目的利用中国的关键审计事项(KAM)数据,本研究旨在检验负面新闻报道是否能缓解典型的KAM。设计/方法/方法本研究使用Levenstein编辑距离(LVD)来计算KAM的水平样板,并调查样板在不同程度的感知法律风险下如何变化。调查结果表明,受到大量负面新闻报道的公司的审计师将减少KAM的样板。这种关联对于市场份额较低的审计公司和财务困境较高的客户公司更为重要。此外,作者发现,负面新闻报道更有可能缓解与管理者主观估计以及重大交易和事件有关的KAM的样板披露。此外,负面新闻报道和样板KAM之间的联系因负面新闻来源而异。原创性/价值研究结果表明,在受到负面新闻报道时,减少KAM的样板对审计师具有免责声明的效果。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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