Does Audit Risk Link Affect the Disclosure Behavior of Key Audit Matters?——A situational study based on the"contagion effect of low-quality audit"
The contagion effect of low-quality audit has negative impact on both auditors and listed companies.This study analyzes the data of A-share listed companies of year 2016-2021,based on the auditor link of the misstatement year in financial restatement events.The contagion effect of low-quality audit on the linked companies during the restatement year is considered as"audit risk link".It is found that auditors significantly tend to enhance the key audit matters disclosure to address audit risk link;Cross-sectional analysis finds that the disclosure of restated events by regulatory authorities,auditor switches during the period,and auditor industry expertise can significantly enhance the above effect;Extensive research finds that in the context of audit risk link,key audit matters disclosure can significantly improve audit quality.The conclusion helps to understand the contagion effect of low-quality audit under the motivation of reputation maintenance of auditors,and identifies the response and governance effect of key audit matters disclosure in it.
NETL
NSTL
万方数据
