【报告主题】Audit Adjustment, Management Disclosure, and Auditors’ Key Audit Matter Decisions
【主讲嘉宾】徐图，中国人民大学
【报告时间】2025年11月18日 10:00
【报告地点】会计学院108室
【内容提要】
We conduct an experiment with Big-Four audit partners and managers to examine how experienced auditors make key audit matter (KAM) decisions based on information about audit adjustment and management disclosure. We predict and find that audit partners are less likely to include an accounting issue as a KAM when a quantitatively immaterial audit adjustment associated with the issue is waived than not waived. This effect is alleviated when the issue will be discussed in a management disclosure than not. In contrast, audit managers’ KAM decisions are not influenced by either audit adjustment or management disclosure. We further demonstrate that auditors’ perception of issue significance mediates the joint effect of audit adjustment, management disclosure, and auditor rank on their KAM decisions. Our study enriches the streams of research on KAM, audit adjustment, and the interplay between management disclosure and auditor judgments. Our findings carry implications for audit firms, firm management, and standard setters.