Auditors’ Narcissism and Audit Report Readability: The Moderating Role of Auditor Specialization

(Samir Ibrahim Abdelazim)

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Abstract

The current research examines the impact of Auditor’s Narcissism (NARC) on the level of Audit Report Readability (ARR). Furthermore, investigates the moderating role of Auditor Specialization (SPEC) on the relationship between NARC and ARR. To ensure a robust analysis, this study utilizes a balanced panel dataset (2018-2023) encompassing all non-financial firms listed on the Egyptian Stock Exchange. Multiple regression techniques will be employed to comprehensively explore the relationships between the variables of interest. The analysis revealed a positive association between NARC and ARR, suggesting more NARC is linked with higher readability. Notably, SPEC presence moderated this association, strengthening the positive effect of NARC on ARR. The present investigation holds potential implications for various stakeholders within the Egyptian business landscape, including domestic firms, investors targeting the Egyptian market, and regulatory bodies governing emerging economies. This study is the first research project to explore the moderating effects of SPEC when interacting with NARC on ARR within emerging markets. By shedding light on these previously unexplored dynamics, the study significantly contributes to our understanding of how various elements influence the ARR in these evolving economic environments.
KEYWORDS
Audit firms, audit quality, emerging economy, expertise, psychology, understandability

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References

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