ANALYSIS OF REPORTING TRANSPARENCY IN FINANCIAL AUDIT THROUGH KAM AND GENDER DIFFERENCES
ANALYSIS OF REPORTING TRANSPARENCY IN FINANCIAL AUDIT THROUGH KAM AND GENDER DIFFERENCES

Author(s): Maria Grosu, Camelia Cătălina Mihalciuc, Ciprian Apostol
Subject(s): Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: gender differences; audit report; transparency in audit reporting; key audit matters (KAM); conservatism; audit opinion;
Summary/Abstract: One of the dimensions of quality reporting in financial auditing is the transparency of information presented in audit reports by financial auditors. In recent years, in order to improve transparency in financial auditing, and thus increase the quality of audit reports, regulators have established that a separate section of the audit report is reserved for key audit matters (KAMs). KAMs are those matters which, based on the auditor's professional judgement, are of most importance to the audit of the financial statements for a period and are selected from among the matters discussed with those charged with governance. The quality of audit reporting, as measured by ensuring transparency, may also be influenced by the characteristics that women may have in comparison to men of being prudent, careful, rigorous and more analytical. This study investigates the relationship between gender differences and transparency in audit reporting by presenting Key Audit Matters that support the audit opinion. The sample consists of companies listed on the regulated market of the Bucharest Stock Exchange from 2016-2021, and the results show that there is an influence of gender differences on financial audit transparency, in that female auditors tend to present information that is more transparent and follows the accounting principle of prudence when detailing Key Audit Matters.

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