We investigate how the mandated disclosure of Key Audit Matters (KAMs) and management disclosures in the financial statement footnotes affect auditors’ perceptions of their accountability and their subsequent fair value decisions. We find a substitution effect between KAMs disclosures and...

The auditor's report is central to the value of the audit process. Research shows that the auditor's report per se has value to users of financial reports. It provides users with an enhanced level of reliability and confidence in their evaluation of a company's financial statements, and this...