Audit partner gender and the COVID-19 pandemic : the impact on audit fees and key audit matters
Murphy, Peter and McLaughlin, Craig and Elamer, Ahmed A. (2023) Audit partner gender and the COVID-19 pandemic : the impact on audit fees and key audit matters. Journal of Financial Reporting and Accounting. ISSN 1985-2517 (https://doi.org/10.1108/JFRA-11-2022-0431)
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Abstract
Purpose: The purpose of this study is to analyze the influence of the COVID-19 pandemic on audit fees and the reporting of key audit matters (KAMs). Additionally, this study also looks into potential differences in the behavior of male and female audit partners during this period, adding to the existing research on gender's effect on different elements of the audit process. Design/methodology/approach: This study used a sample of all FTSE 350 firms from before the COVID-19 pandemic and during the pandemic. It analyzed the data using Ordinary Least Squares regression analysis to test its hypotheses. Findings: This paper provides early evidence on the impact of the COVID-19 pandemic on audit fees and KAM disclosures in the UK. The results of this study show an increase in audit fees during the pandemic and greater detail in the reporting of KAMs, with no significant difference between male and female audit partners. These findings will be of interest to audit firms and regulators as they assess the performance of auditors during the pandemic and evaluate the expanded audit report's effectiveness in providing sufficient information to financial statement users. Originality/value: This study provides first-of-its-kind empirical evidence on how auditors in the UK reacted to the COVID-19 pandemic. The findings of this study will be of interest to audit firms, regulators, such as the Financial Reporting Council, and other stakeholders as they evaluate the performance of auditors during the crisis period. The results will help regulators assess the effectiveness of the expanded audit report in providing sufficient information during a time of heightened risk and scrutiny.
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Item type: Article ID code: 86457 Dates: DateEvent7 July 2023Published7 July 2023Published Online31 January 2023AcceptedSubjects: Social Sciences > Commerce > Accounting Department: Strathclyde Business School > Accounting and Finance Depositing user: Pure Administrator Date deposited: 14 Aug 2023 12:25 Last modified: 03 Dec 2024 01:25 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/86457