The Effect of Fair Value Disclosure in Audit Report as a key Audit Matters on Auditors’ Skeptical professional Judgments and Actions “Experimental Study”

This research aimed to study the effect of reporting key audit matters (KAM) by auditors, according to requirements of the IAS no,(701) on auditors’ Skeptical professional Judgments and Actions that releated to fair value acount.This research uses a 2×2 between subjects experiment, that includes two main variables KAM consideration (absent Vs. present), and  client pressure (low vs. High) are manipulated. So, there are four practical cases, which were submitted to sample of auditors in the Egyptian auditing offices, and the experiment resulted in collecting 156 responses divided into four independent samples. The results of this research provided important scientific and practical evidence, which important of these results is: that auditors’ professional Judgments and actions is more conservative when reporting fair value as a key audit matters, and this result appeared more significantly for the sample of Expert auditors and more qualified, so this result reflect an interaction effect between the KAM disclosures and both of auditor's experience and his professional qualification. The results of hypothesis testing and additional analysis also present important evidence indicating that client pressure only affects skeptical professional judgments by making them more conservative. Whereas the interaction effect between the client pressure and KAM, the auditors issue less conservative judgments.