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Key Audit Matters Between Auditors and Auditees in Middle East and North Africa

Author

Listed:
  • Osama Mahd

    (Accounting and Information System Department, College of Business and Economics, Qatar University, Doha P.O. Box 2713, Qatar)

  • Mohammed Idris

    (Accounting Department, Faculty of Business, Applied Science Private University, P.O. Box 541350, Amman 11937, Jordan)

Abstract

This study investigates the impact of auditor- and auditee-specific features on key audit matter disclosures in auditors’ reports. It focuses on client factors, including debt, profitability, financial distress, and audit factors, including auditor size, rotation, and opinion. A direct extraction of audit reports from different markets in Middle East and North Africa covering three years from 2020 to 2022 was carried out. A content analysis of the annual reports regarding key audit matters, client-specific characteristics, and auditor characteristics was performed in this research. The results of this study show that key audit matters are not correlated to profitability and financial distress, while the debt ratio is significantly related to the number of key audit matters. The results also indicate that audit rotation and opinion have a significant explanatory effect on key audit matters as the coefficients of both independent variables are positive and statistically significant while the size of the audit firm is not related to the number of key audit matters.

Suggested Citation

  • Osama Mahd & Mohammed Idris, 2024. "Key Audit Matters Between Auditors and Auditees in Middle East and North Africa," JRFM, MDPI, vol. 17(11), pages 1-17, November.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:11:p:494-:d:1513815
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    References listed on IDEAS

    as
    1. Osama A. Mah’d & Ghassan H. Mardini, 2022. "Matters may matter: The disclosure of key audit matters in the Middle East," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2111787-211, December.
    2. John Kalimilo Malagila & Ganga Bhavani & Christian Tabi Amponsah, 2020. "The perceived association between audit rotation and audit quality: evidence from the UAE," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 10(3), pages 345-377, May.
    3. Suneerat Wuttichindanon & Panya Issarawornrawanich, 2020. "Determining factors of key audit matter disclosure in Thailand," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 32(4), pages 563-584, November.
    4. Marina Trpeska & Atanasko Atanasovski & Zorica Bozinovska Lazarevska, 2017. "The Relevance of Financial Information and Contents of the New Audit Report for Lending Decisions of Commercial Banks," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 16(4), pages 455-471, December.
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