Preliminary communication

https://doi.org/doi.org/10.32910/ep.76.1.5

The relationship between key audit matters and audit committee effectiveness after the change of audit regulation

Toni Šušak
Davor Filipović
Mario Filipović

Abstract

In accordance with the new Auditing Act, many changes were introduced in the audit profession, among which was the improvement of the audit committee’s position, which is expected to have a high level of competence during cooperation with an external auditor. In this paper, the focus was on the key audit matters that independent auditors highlighted in their reports. Hence, the main aim was to examine the relationship between their number and the effectiveness of that committee in light of changes in audit legislation. The research sample included joint-stock companies listed on the Zagreb Stock Exchange for which data were obtained in the period from 2016 to 2018 and the research models were estimated using panel analysis. The research results pointed out that after the new Auditing Act entered into force, the relationship between the number of disclosed key audit matters and the effectiveness of the audit committee is more negative, similar to the relationship between the number of disclosed key audit matters and the audit committee establishment, what is the primary scientific contribution of the research.

Keywords

audit committee; Audit Act; key audit matters; panel analysis

Hrčak ID:

329132

URI

https://hrcak.srce.hr/329132

Publication date:

14.3.2025.

Article data in other languages: croatian

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