Auditors’ Contribution in Enhancing Non-Quantitative Information Quality

The purpose of this research is to determine, first, whether an auditor, by conducting a statutory audit of the company’s financial statements, can improve the company’s non-quantitative information quality, and, second, whether the six leading audit firms in Greece improve the non-quantitative information quality more than other, smaller audit firms. The data are primary, arising from the published financial statements for the period from 2019 to 2022 of 84 companies operating in the agricultural supplies sector. These financial statements were retrieved in January 2024 from the General Commercial Registry of Greece. We have reviewed the management reports of these companies to examine their compliance with Greek legislation requirements on non-quantitative information reporting, i.e., on the entity’s performance, business risk management, and environmental and labor issues. We note that non-quantitative information reporting is improving during the period 2019–2022, regardless of the auditor’s involvement. The average reporting scores of audited companies are higher than the corresponding scores of non-audited companies, so the auditors have significantly improved the non-quantitative information reporting. In addition, the reporting scores of companies audited by six leading audit firms are higher than the corresponding scores of companies audited by the other, smaller audit firms.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-03-24
DOI
https://doi.org/10.3390/jrfm18040170
Citations
1
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
3.91
Controls
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article

Auditors’ Contribution in Enhancing Non-Quantitative Information Quality

Apostolos G. Christopoulos, Stella Zounta, Evangelos Soras
1 citations
Journal of risk and financial management
Auditing, Earnings Management, Governance
3.91
article

Auditors’ Contribution in Enhancing Non-Quantitative Information Quality

Apostolos G. Christopoulos, Stella Zounta, Evangelos Soras
article en
1 citations

Abstract

The purpose of this research is to determine, first, whether an auditor, by conducting a statutory audit of the company’s financial statements, can improve the company’s non-quantitative information quality, and, second, whether the six leading audit firms in Greece improve the non-quantitative information quality more than other, smaller audit firms. The data are primary, arising from the published financial statements for the period from 2019 to 2022 of 84 companies operating in the agricultural supplies sector. These financial statements were retrieved in January 2024 from the General Commercial Registry of Greece. We have reviewed the management reports of these companies to examine their compliance with Greek legislation requirements on non-quantitative information reporting, i.e., on the entity’s performance, business risk management, and environmental and labor issues. We note that non-quantitative information reporting is improving during the period 2019–2022, regardless of the auditor’s involvement. The average reporting scores of audited companies are higher than the corresponding scores of non-audited companies, so the auditors have significantly improved the non-quantitative information reporting. In addition, the reporting scores of companies audited by six leading audit firms are higher than the corresponding scores of companies audited by the other, smaller audit firms.

Journal of risk and financial managementVol. 18(4)
University of the Aegean (GR)
Decent work and economic growth
Openalex Percentile: Top 9%
Auditing, Earnings Management, Governance
3.91
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