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Does the audit committee member’s accounting experience associated with key audit matter types?

Author

Listed:
  • Ahmed Aboud

    (Zayed University
    Beni-Suef University)

  • Hany Elbardan

    (Bournemouth University Business School
    Alexandria University)

  • Moataz El-Helaly

    (American University in Cairo)

  • Amr Kotb

    (Zayed University)

Abstract

Using a narrow view of accounting experience, this study examines the relationship between accounting experience on audit committees (ACs) and key audit matters (KAMs) in the UK. In contrast to extant research, this study distinguishes between different types of accounting experience on AC and how this relates to different types of KAMs. We also address the effects of the interplay between accounting and supervisory experiences on KAMs. Using a sample from FTSE 350, we provide robust evidence that accounting experience on ACs is an important driver of extended audit reporting quality. Moreover, we find evidence that different types of accounting experience have mostly similar effects on different types of KAMs. Further, we show that AC members with prior supervisory experience complement the role of accounting experience. Nevertheless, this complementary relationship varies between types of KAMs. Overall, our study offers important insights regarding how accounting and supervisory experience on ACs is associated with the quality of KAMs reported in the extended reports. Our results are robust to alternative sampling, model specifications, and endogeneity concerns.

Suggested Citation

  • Ahmed Aboud & Hany Elbardan & Moataz El-Helaly & Amr Kotb, 2024. "Does the audit committee member’s accounting experience associated with key audit matter types?," Review of Quantitative Finance and Accounting, Springer, vol. 63(2), pages 753-780, August.
    • Handle: RePEc:kap:rqfnac:v:63:y:2024:i:2:d:10.1007_s11156-024-01276-2
    DOI: 10.1007/s11156-024-01276-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Audit committee; Accounting experience; Key audit matters; Extended audit reporting;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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