Document Type : Research Paper
Abstract
Abstract
Purpose: The upgrade of the independent audit report in recent years and the addition of the Key Audit Matters section to improve transparency are considered essential changes in the structure of the audit report. In this regard, this research aims to investigate the effect of disclosure of key audit matters on financial distress.
Method: To reach research objectives, data from 124 companies listed on the Tehran Stock Exchange from 2018 to 2023 were collected, and the research hypothesis was tested using combined data and logistic regression analysis.
Results: The research shows a positive and significant relationship between the disclosure of key audit matters and financial distress.
Conclusion: The findings of this research show the usefulness of key audit matters in helping the users of financial statements to judge the going concern of the company, and the users of financial statements will be able to better evaluate the company's financial distress.
Contribution: This research provides evidence of a new mechanism for using audit report information to help assess and monitor an employer's financial health.
Main Subjects
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