Transparency report disclosure practices of large- and medium-sized audit firms in South Africa

Journal of Economic and Financial Sciences

Field Value
Title Transparency report disclosure practices of large- and medium-sized audit firms in South Africa
Creator Smith, Rozanne J. Marx, Ben
Subject corporate governance; audit firms; independence; stakeholders; public interest; EXCO; oversight board; transparency report disclosure
Description Research purpose: The purpose of this study is to examine the corporate governance practices disclosed by large- and medium-sized audit firms in South Africa, with a particular focus on transparency reports. Audit firms serve the public interest.Motivation for the study: This study was motivated by recent corporate failures in South Africa, such KPMG, VBS Bank, and Steinhoff, to mention a few.Research approach/design and method: The research approach followed for this study consists of a mixed method approach. Qualitative secondary data were obtained from publicly accessible information published on the websites of the audit firms. The data, which consisted of the firms’ transparency reports, were analysed through content analysis. The results were then converted into quantitative data.Main findings: The main findings reveal that audit firms in South Africa do not disclose sufficient corporate governance information in their transparency reports. There are inconsistencies between audit firms.Practical/managerial implications: In South Africa, audit firms do not have a corporate governance code for audit firms, and thus audit firms are not disclosing the relevant corporate governance information to their stakeholders.Contribution/value-add: This article contributes to the limited literature available on audit firm governance. Based on the findings, the study proposes best practice recommendations and regulatory and statutory recommendations regarding audit firm governance.
Publisher AOSIS
Date 2021-07-29
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/jef.v14i1.662
Source Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 14 pages 2312-2803 1995-7076
Language eng
Rights Copyright (c) 2021 Rozanne J. Smith, Ben Marx