Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

1-2025

Abstract

Transparency of information and audit quality are crucial for the efficiency and stability of the market. The disclosure of key audit matters has become an essential part of audit reports, yet there remains widespread debate regarding the role of key audit matters. This study finds a significant positive correlation between the extent of key audit matter disclosures and audit quality. Detailed disclosures can enhance information transparency, strengthen auditors’ sense of responsibility, and reduce information asymmetry. However, over-templating may have negative effects on audit quality, leading to a lack of personalized judgment by auditors. Additionally, this paper suggests that the partner performance evaluation mechanism influences key audit matters through both punitive and guiding mechanisms. Specifically, the punitive mechanism can increase the length of disclosures, while the guiding mechanism promotes standardization and templating. Further research indicates that the disclosure of key audit matters releases more information to the market, lowering financing costs and thereby improving market efficiency. Subsequently, this paper explores the impact of accounting firm integration on key audit matters. The conclusions not only provide important implications for audit practice but also emphasize the importance of achieving adequate information disclosure in audit reports. In further constructing partner performance evaluations, greater attention should be paid to the informational content conveyed through the disclosure of key audit matters. Not only should there be increased focus on the specific environment and risks of each audited entity, but professional judgment and detailed analysis should also be integrated into the communication of key audit matters.

Keywords

Partner Performance Evaluation, Disclosure of Key Audit Matters, Audit Quality, and Accounting Firm

Degree Awarded

Doctor of Bus Admin (CKGSB)

Discipline

Corporate Finance | Finance and Financial Management

Supervisor(s)

FU, Fangjian

First Page

1

Last Page

99

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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