Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector
Purpose: This research aims to verify the impact of Key Audit Matters (KAMs) on income smoothing practices in Brazilian companies in the electric power sector. The final sample covers 33 companies in this sector, with the study period from 2016 to 2019, as KAMs became mandatory for financial statem...
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| Format: | Article |
| Language: | Portuguese |
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Universidade Federal do Rio Grande do Norte
2025-01-01
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| Series: | Revista Ambiente Contábil |
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| Online Access: | https://periodicos.ufrn.br/ambiente/article/view/38660 |
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| _version_ | 1841560732165996544 |
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| author | Ana Claudia Santo Lima Cleidinara Ribeiro Dias Lúcio de Souza Machado Carlos Henrique Silva do Carmo |
| author_facet | Ana Claudia Santo Lima Cleidinara Ribeiro Dias Lúcio de Souza Machado Carlos Henrique Silva do Carmo |
| author_sort | Ana Claudia Santo Lima |
| collection | DOAJ |
| description |
Purpose: This research aims to verify the impact of Key Audit Matters (KAMs) on income smoothing practices in Brazilian companies in the electric power sector. The final sample covers 33 companies in this sector, with the study period from 2016 to 2019, as KAMs became mandatory for financial statements issued on or after December 31, 2016.
Methodology: To measure intentional income smoothing, two measures were used by capturing different dimensions of income smoothing, namely, general smoothing and accrual-based smoothing, as presented by Lang, Lins, and Maffet (2012). To study KAMs, three distinct proxies were used: the quantity of KAMs reported by company per year, the FLESCH Reading Ease, and the number of words (LENGTH).
Results: The results indicate that KAMs do not have a significant impact on the practice of intentional income smoothing in the financial results of the analyzed companies.
Contributions of the Study: This work contributes to the literature by advancing previous research carried out in Brazil and by cooperating with regulators and standard setters by suggesting improvements in audit reports.
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| format | Article |
| id | doaj-art-c828abbf4873473c8bd678003421fffc |
| institution | Kabale University |
| issn | 2176-9036 |
| language | Portuguese |
| publishDate | 2025-01-01 |
| publisher | Universidade Federal do Rio Grande do Norte |
| record_format | Article |
| series | Revista Ambiente Contábil |
| spelling | doaj-art-c828abbf4873473c8bd678003421fffc2025-01-03T19:13:24ZporUniversidade Federal do Rio Grande do NorteRevista Ambiente Contábil2176-90362025-01-0117110.21680/2176-9036.2025v17n1ID38660Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sectorAna Claudia Santo Lima0Cleidinara Ribeiro Dias1Lúcio de Souza Machado2Carlos Henrique Silva do Carmo3Federal University of UberlândiaJosé Alves University – UNIALFAFederal University of Goiás - FACE/UFG.Federal University of Goiás - FACE/UFG. Purpose: This research aims to verify the impact of Key Audit Matters (KAMs) on income smoothing practices in Brazilian companies in the electric power sector. The final sample covers 33 companies in this sector, with the study period from 2016 to 2019, as KAMs became mandatory for financial statements issued on or after December 31, 2016. Methodology: To measure intentional income smoothing, two measures were used by capturing different dimensions of income smoothing, namely, general smoothing and accrual-based smoothing, as presented by Lang, Lins, and Maffet (2012). To study KAMs, three distinct proxies were used: the quantity of KAMs reported by company per year, the FLESCH Reading Ease, and the number of words (LENGTH). Results: The results indicate that KAMs do not have a significant impact on the practice of intentional income smoothing in the financial results of the analyzed companies. Contributions of the Study: This work contributes to the literature by advancing previous research carried out in Brazil and by cooperating with regulators and standard setters by suggesting improvements in audit reports. https://periodicos.ufrn.br/ambiente/article/view/38660Audit quality; Income smoothing; KAMs. |
| spellingShingle | Ana Claudia Santo Lima Cleidinara Ribeiro Dias Lúcio de Souza Machado Carlos Henrique Silva do Carmo Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector Revista Ambiente Contábil Audit quality; Income smoothing; KAMs. |
| title | Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector |
| title_full | Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector |
| title_fullStr | Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector |
| title_full_unstemmed | Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector |
| title_short | Reporting of key audit matters: an analysis based on income smoothing in the brazilian electric power sector |
| title_sort | reporting of key audit matters an analysis based on income smoothing in the brazilian electric power sector |
| topic | Audit quality; Income smoothing; KAMs. |
| url | https://periodicos.ufrn.br/ambiente/article/view/38660 |
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