Does audit quality affect integrated reporting quality? Evidence from South Africa

Abubakar Ahmed, Nuhu Abubakar, Hafizah Abd-Mutalib and Nor Laili Hassan

Global Business and Economics Review, 2024, vol. 30, issue 3, 311-328

Abstract: This article examines the effect of audit quality on integrated reporting quality (IRQ) through the lens of legitimacy theory. Specifically, we examine the effects of industry-specialised auditor and audit fees on IRQ in the context of South African companies. The sample consisted of non-financial companies listed on Johannesburg Stock Exchange (JSE), whose reports are available in provided by the International Integrated Reporting Council (IIRC). The data are analysed using the fixed-effect regression technique. The authors utilised a scoreboard approach and content analysis to measure the extent of disclosure (IRQ). We find that firms that employ industry-specialised auditors provide higher-quality integrated reports, and audit fees positively influence IRQ. These findings are relevant to firm stakeholders as they demonstrate the importance of external auditors in ensuring the credibility of corporate reports even as these reports expand to cover a broad spectrum of non-financial information.

Keywords: integrated reporting; IRQ; audit quality; specialised auditor; audit fees; South Africa. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=137621 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:30:y:2024:i:3:p:311-328

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().