This study examines the direct and indirect effects of firm complexity on the accuracy of auditors’ going concern opinion (GCAO), and whether and how auditors’ work stress (AWS) can serve as a mediating variable in such a relationship. We analyzed a sample of 705 firm-year observations from 105 non-financial firms listed on the Egyptian Stock Exchange between 2017 and 2023. Binary logistic regression, OLS regression, and path analysis were employed to test the study hypotheses. The results suggested that firm complexity is negatively associated with GCAO accuracy but positively associated with AWS. Furthermore, a negative relationship was observed between AWS and GCAO accuracy. Finally, the analysis revealed that AWS mediates the relationship between firm complexity and GCAO accuracy. The findings remained robust across various sensitivity tests. Policymakers, audit firms, and investors can benefit from the findings, which emphasize the necessity of AWS mitigation techniques to improve GCAO accuracy and ultimately contribute to transparent financial reporting. This study provides unique evidence from a developing country on how firm complexity can indirectly impact the quality of auditors’ judgments.

This study investigates the influence of artificial intelligence (AI) adoption on the effectiveness of audit planning in the dynamic Egyptian business environment, with a focus on the moderating role of audit firm size. Using a 2 × 2 factorial experimental design, we conducted a field experiment with a purposive sample of 130 auditors, comprising 65 participants from Big 4 firms and 65 from non-Big 4 firms. Our findings confirm a significant positive association between AI adoption and audit planning effectiveness, which was measured across dimensions such as risk identification, efficiency, and clarity. The results further reveal a significant moderating effect of audit firm size, where the positive impact of AI on planning effectiveness is notably more pronounced in large audit firms. These findings, corroborated by sensitivity analyses, provide empirical support for Contingency Theory and the UTAUT. The study contributes to the literature by offering evidence from an emerging economy. It provides critical implications for regulators, audit firms, and accounting educators regarding the integration and governance of AI in auditing.

Keeping up with the global debate around cryptocurrencies, our study examines the relationship between cryptocurrency recognition and assessing the risks of material misstatement (RMM) and the possible moderating effect of auditor IT expertise on this relationship. We conducted a 2x2 factorial experimental design involving 130 auditors employed by licensed accounting and auditing firms. The results suggest that the presence of cryptocurrency in financial statements significantly increases the assessed RMM, especially among auditors with higher IT expertise. Sensitivity analysis supports these results. These findings have important implications for audit practices, highlighting the need for advanced IT training and specialized expertise for auditors involved in cryptocurrency audits. In line with agency theory, this study demonstrates the role of IT expertise in mitigating information asymmetry related to complex and emerging technologies. Moreover, our findings have practical implications since regulators, standard setters, audit firms, and educators can benefit from the findings, which emphasize the critical role of auditor competence in cryptocurrency matters and the value of regulatory oversight in promoting sound audit practices in this emerging area. In addition, our study fills a knowledge gap by providing recent evidence from a developing country.

Purpose – This research aims to study and investigate the relationship between the audit style and earnings comparability. Also, the research examines the influence of some firm-specific characteristics, as moderating variables, on this relationship. Design/Methodology – Ordinary Least-Squares (OLS) regression and multiple regressions are used to test the research hypotheses. The sample used in the current study consists of 57 non-financial firms listed on the Egyptian Stock Exchange (EGX) during 2016–2019 resulting in a final sample of 1,039 firm-pair year observations. Findings – The researcher concludes that the audit style, as measured by whether each firm-pair is audited by the same audit firm, has a significant positive effect on the earnings comparability, as measured by the differences in the discretionary accruals between firm-pairs. Besides, the positive effect of the audit style on earnings comparability has been strengthened under the presence of the firm size as a moderating variable, but it does not vary by the leverage and profitability moderating variables. These findings are robust since the results of the sensitivity analyses, using the Big 4 audit firms and the differences in the operating cash flows as alternative measures to the audit style and earnings comparability, respectively, support the results of the basic analysis. However, the results under the additional analysis indicate that all firm characteristics have a significant positive effect on the differences in the discretionary accruals which, in turn, means a negative effect on earnings comparability. Originality/value – To the best of the researcher’s knowledge, there is relatively limited evidence on the comparability of earnings, as measured by the differences in discretionary accruals between firm-pairs, and its association with the audit style under the presence of firm characteristics as moderating variables. Furthermore, the findings of this research have some implications for researchers, audit firms, and regulatory bodies who seek to enhance the quality of the financial statements in emerging economies.

Purpose – This research aims to study and investigate the relationship between the financial reporting frequency, in terms of the quarter, semi-annual, and annual reporting, and the value relevance of accounting information, as measured through the extent of the reflection of the accounting information related to the book value of equity and earnings per share in stock prices. In addition, it examines the influence of the financial reporting lag, as a moderating variable, on this relationship. Design/Methodology – Multiple regressions are used to test research hypotheses using a sample of 90 non-financial firms listed on the Egyptian Stock Exchange (EGX) during 2016–2019. The sample is divided into 3 samples, according to the financial reporting frequency, including 288 firm-quarter observations, 331 firm-semiannual observations, totaling 619 firm-interim observations, and 335 firm-year observations. The sample is selected based on some conditions and is constrained by the availability of data. Findings – The researcher concludes that the more frequent reporting in terms of publishing interim financial statements, enhances the value relevance of the accounting information. That is, results indicate that the accounting information provided by the interim financial statements has more value relevance than that provided by the annual financial statements. However, the longer the period till issuing the interim/annual financial statements, the more likely the accounting information loses its relevance, especially that provided periodically. Unexpectedly, results revealed that the accounting information provided by the semi-annual financial statements has a higher value relevance than that quarterly provided, however, both are similarly affected by the financial reporting lag. These findings are robust since the results of the sensitivity analyses, using different methods in measuring the effect of the financial reporting lag, support the results of the basic analysis. Originality/value – To the best of the researcher’s knowledge, there is relatively limited evidence on the timeliness of the interim financial reporting, as measured by the frequency of reporting and the financial reporting lag, and its association with the value relevance of the accounting information in the Egyptian context. Furthermore, the findings of this research have some implications for researchers, financial statements’ preparers and users, and regulatory bodies who seek to enhance the quality of the financial statements in emerging economies.