Abstract:
The focus of this study is on a review of literatures on Critical Audit Matters CAMs in relation to Audit Quality and to x-ray as many as all the past available works on the Critical Audit Matters CAMs in relation to CAMs, CAMs procedures, investors' views, auditors' liability and audit reporting quality as found in the literatures and the gap in knowledge for further research. We provide a review of twenty one studies from 2014 to 2020 that anchored on CAMs disclosures procedures, audit reporting quality, investors' expectations, risks and auditors' liability. We find that there are evidences that collectively suggest that CAMs disclosure improves and also reduces the aforementioned. Finally, we find mixed evidences in some of these observations that demand for future research. Further, these observations shows there are several other substantive differences among these studies that give place for additional researches and more works on CAMs and effects on CAMs disclosures. Our study contribute on CAMs procedures, auditor reporting quality and have implications for the debate regarding CAMs, especially, managers, accountants, auditors and regulators and present important insights regarding various literatures on CAMs disclosure. We recommend that CAMs disclosure suggest to be informative to investors, analysts, protects auditors; improves audit reporting quality; but CAMs disclosures still suggests a potential unintended consequence and thus warrants further considerations.
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