Abstract
Several financial scandals have compromised audit quality and the credibility of financial information, leading to the creation of ISA 701, which requires the disclosure of key audit matters to increase the transparency of information and restore user confidence. This thesis investigates the determinants of the number of key audit matters, with a particular focus on the complexity of companies, measured based on four variables: number of operating segments, tangible fixed assets, intangible assets and turnover. The aim is to provide auditors with information that will allow them to adjust their methodologies, increasing the transparency of audit reports, as well as helping regulators to create standards that promote more rigorous audit work. The study was based on a linear regression model, in which the explained variable is the number of key audit matters, and the explanatory variables cover characteristics of the auditors and the companies audited, including the complexity metrics defined. The sample consists of the companies from Portuguese General Stock Index, on each reporting date, from 2018 to 2022. The results indicate that there is no statistically significant relationship between the number of key audit matters and the operating segments, tangible fixed assets and turnover. On the other hand, intangible assets are statistically significant when analyzing the number of key audit matters. Therefore, the auditor should adapt the audit procedures to focus on assessing and mitigating the risk of intangible assets.| Date of Award | 28 Oct 2024 |
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| Original language | Portuguese |
| Awarding Institution |
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| Supervisor | Maria José Martins Lourenço da Fonseca (Supervisor) & Ricardo Ribeiro (Co-Supervisor) |
UN SDGs
This student thesis contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
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SDG 16 Peace, Justice and Strong Institutions
Keywords
- Key audit matters
- ISA 701
- Complexity
- Transparency
- Audit report
Designation
- Mestrado em Auditoria e Fiscalidade
Cite this
- Standard