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dc.contributor.authorBoolaky, Pran Krishansing
dc.contributor.authorQuick, Reiner
dc.description.abstractSubsequent to the financial crisis, standard setters developed suggestions for enhancing the audit function, in order to increase financial stability. One related idea is to expand the audit report disclosed to the public, to ensure that it is fit for purpose. This study investigates the impact of expanded audit reports, namely information on the assurance level, materiality levels and key audit matters (KAM), on bank director perceptions of the quality of the financial statements, the audit and the audit report, as well as on their credit approval decisions. We conduct an experiment involving a sample of 105 bank directors and use ANCOVA to determine the predictors of bank director perceptions and decisions. Our findings suggest that disclosing the assurance level has a significantly positive impact. In contrast, we cannot demonstrate a material effect of expanding the audit report to include the materiality level or KAM. As a consequence, standard setters should carefully analyse the effect of additional information before making decisions on expanding the content of the audit report. Such expansions are not necessarily perceived as useful by stakeholders.
dc.publisherWiley-Blackwell Publishing
dc.relation.ispartofjournalInternational Journal of Auditing
dc.subject.fieldofresearchAuditing and Accountability
dc.subject.fieldofresearchAccounting, Auditing and Accountability
dc.titleBank Directors’ Perceptions of Expanded Auditor’s Reports
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.hasfulltextNo Full Text
gro.griffith.authorBoolaky, Pran Krishansing

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