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Swedish Bank Directors' Perceptions of Extended Audit Reports
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2019 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Audited financial statements are the most substantial source of information concerning bank loan decisions, and investors mainly base their investment decisions on the financial statements in combination with the audit report. The financial crisis brought attention to the existing expectation gap between auditors and stakeholders. An attempt to narrow the gap has been done by IAASB. The new standards require auditors to provide additional information in the audit report.

The purpose of the study is to investigate how the extended audit report is perceived by Swedish bank directors.

The study has a quantitative research strategy with an experimental design. The experiment includes one control group and seven experimental groups, and the participating Swedish bank directors amounted up to 122. An ANCOVA is performed to test the research questions regarding the bank directors’ perceptions and decisions.

The empirical findings and analysis reveal that the disclosure of the assurance level has a positive impact on bank directors’ confidence in the financial statements, perceived quality of the audit report, perceived value of the information the audit report contains, as well as the probability of granting a credit. The results also indicate a significance for key audit matters (KAM) regarding the perceived value of information, meaning that the disclosure of KAM improves bank directors’ perceptions of the informational value the audit report contains. The disclosure of the materiality level does not appear to have a significant impact on the extending of the audit report, implying that a disclosure of the applied materiality level may not be beneficial for bank directors’ perceptions and decisions.

Place, publisher, year, edition, pages
2019. , p. 55
Keywords [en]
extended audit report, assurance level, materiality level, key audit matters, lending decisions
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-43828ISRN: JU-IHH-FÖA-2-20190800OAI: oai:DiVA.org:hj-43828DiVA, id: diva2:1318963
Subject / course
JIBS, Business Administration
Supervisors
Examiners
Available from: 2019-06-14 Created: 2019-05-29 Last updated: 2019-06-14Bibliographically approved

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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