The Effect of the Informational Content of Key Audit Matters’ Paragraph in the New Auditor`s Report on Narrowing  both Information and Communication Gap

Bekhet Mohamed, Mohamed Abd Elnaby

doi:10.21608/acj.2017.44605

The Effect of the Informational Content of Key Audit Matters’ Paragraph in the New Auditor`s Report on Narrowing both Information and Communication Gap

Document Type : Original Article

Author

Mohamed Abd Elnaby Bekhet Mohamed

Accounting department Faculty of Commerce Alexandria University Alexandria Egypt

10.21608/acj.2017.44605

Abstract

The paper aims to investigate the effect of the informational content of the new Key Audit Matters’ paragraph added to the revised audit report according to the new international auditing standards issued by IAASB on 2015 ISA 701, on narrowing both parts of the audit expectation gap ; information and communication gap.The researcher developed two hypotheses to test the relationships under study. The experiment was applied on a sample consisting of a group of institutional investors and financial analysts in Egypt.The results of the study reveals that both institutional investors and financial analysts perceive the existence of both information and communication gap in audit report and that including Key Audit Matters Leads to narrowing the gap.

Keywords