Key audit matter disclosures and earnings comparability
研究了不同审计师的关键审计事项披露文本相似性是否与客户公司盈余可比性相关，发现审计程序一致性而非风险描述相似性对盈余可比性有显著影响。
We examine whether the textual similarity of key audit matter (KAM) disclosures across different auditors is associated with greater earnings comparability among their client firms. We find that when two auditors disclose more similar audit procedures in response to KAMs, their client firms exhibit greater earnings comparability. In contrast, we do not find significant evidence that similarity in risk descriptions is associated with earnings comparability. These results suggest that, after accounting for differences in client fundamentals and risk exposures, consistency in audit procedures plays a critical role in shaping earnings comparability. By disentangling risk descriptions from auditor responses, we identify a salient textual attribute of KAM disclosures – auditor procedural consistency – that helps explain how auditors influence their clients’ earnings comparability. Our findings contribute to the growing KAM literature and offer important implications for regulators and users of financial statements seeking to better understand the communicative value of KAM disclosures and their relevance to audit quality.