The role of audit styles in financial statement comparability: South African evidence

This study investigates the role of audit styles at different levels on financial statement comparability in South Africa, a setting where firms report under International Financial Reporting Standards (IFRS), institutional environment is strong and dominated by Big 4 firms. An output‐based measure used to consider association between firm level, office level individual auditor comparability. Evidence style effects found three levels—the firm, auditor. The further finds some evidence that dominates style. finding suggests even countries internal (within firm) external (country regulations) control mechanisms are strong, present associated with increased Using IFRS principles‐based environment, despite controls in‐house working rules firms, auditors continue have autonomy interpretation application accounting principles rules.