Are All Auditors the Same? KAM Topic Selection and Audit Procedure Choices in the United Kingdom

ABSTRACT We investigate whether and how audit partners differ in the auditing of key audit matters (KAMs) in expanded audit reports in the United Kingdom. Using hand-collected audit report data and manual categorization, we first present descriptive evidence of audit partners’ heterogeneity in their KAM topic choices and the corresponding audit procedures. We then document that when an audit partner rotates within the same audit firm, the incoming partner tends to change KAMs and the corresponding audit work, and the characteristics of the incoming partners affect audit judgment. In addition, we show that heterogeneous KAM selection and audit work choices are associated with variations in audit outcomes. Finally, we provide evidence that audit partners exhibit different, yet consistent, audit traits.