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The Effect of Audit Firm Partner Gender Diversity on the Disclosure of Key Audit Matters
Mohsen Khotanlou1 , Mostafa Abdi2 , Mahdi Kazemioloum3
1- Assistant Professor, Department of Accounting, Faculty of Economic and Social Science, Bu-Ali Sina University, Hamedan, Iran (Corresponding Author)
2- PhD in Accounting, Department of Accounting, Faculty of Human Science, Zanjan University, Zanjan, Iran. abdi.accounting @yahoo.com
3- Assistant Professor, Department of Accounting, Faculty of Economic and Social Science, Bu-Ali Sina University, Hamedan, Iran. mkhotanlou@basu.ac.ir , m.kazemiolum@basu.ac.ir
Abstract:   (942 Views)
Including Key Audit Matters (KAM) in the audit report is one of the significant changes in the structure of the report in recent years, relying on auditors' professional judgment. It is expected that auditors' personality traits and gender influence their risk-taking levels, accuracy in audit project execution, and sensitivity to disclosing key client issues, leading to differences between male and female auditors. Individual characteristics affect auditors' professional judgments, so their perspectives on KAM disclosure often vary. Therefore, this study examines the impact of audit firms' partner gender diversity on the disclosure of KAM. The study collects data from 108 companies listed on the Tehran Stock Exchange from 2018–2023. The research hypothesis is tested using panel data and multiple regression analysis. The findings reveal that the presence of female audit partners in audit projects leads to greater disclosure of KAM. Furthermore, the results indicate that other auditor characteristics, such as auditor rotation and tenure, have a significant positive impact on KAM disclosure. This study provides new insights into the role of female auditors in audit reporting. The findings suggest that audit firms should consider gender diversity when selecting auditors, as it can lead to more comprehensive KAM disclosure. Additionally, they assist standard setters in evaluating new regulatory reforms and changes in audit reporting
Keywords: Audit report, Audit risk, Gender diversity of auditors, key audit matters
     
Type of Study: Research | Subject: Special
Received: 2024/11/22 | Accepted: 2025/03/20
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