Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289213 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 9 [Issue:] 1 [Article No.:] 2113494 [Year:] 2022 [Pages:] 1-25
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The external audit report is a guarantee of financial information reliability that companies provide to the market for stakeholders' decisions. However, some firms did not disclose relevant information on company risks for users due to managers' pressure. Few years ago, auditors of listed companies in Europe have had to break down firms' risks using the Key Audit Matters (KAMs) in a new format called extended audit report. This article conducts an empirical analysis to examine the content of this report, to know how difficult to read is and its differences between the first and the second year of its implementation. Using all Spanish listed companies, our results show that extended audit reports are difficult to understand. Furthermore, the evidence corroborates that KAMs are sticky for a firm year to year as there are no statistically significant differences in the readability indices, neither in the narrative nor linguistic style, comparing the first two years of its implementation.
Subjects: 
content analysis
extended audit report
going concern
key audit matters
readability
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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