Akademik Məlumat İdarəetmə Sistemi
International Journal of Accounting, 2025 (ESCI, Scopus)
The research problem We review the current state of extended audit reporting (EAR) literature and suggest key areas for expansion. Motivation or theoretical reasoning EAR is a rapidly growing area of scholarly research, and more than 100 academic studies have been published since the last literature review on EAR. This systematic literature review (SLR) comprehensively reviews existing literature, identifies gaps, and recommends areas for future exploration. Target population This study reviews 154 high quality articles from rated journals during the period 2014-2023 to elucidate the state of EAR literature and to identify key areas for further development. As such, it is useful for financial statement users, standard setters, and regulators. Adopted methodology This study employs an SLR approach. Articles identified through various search engines were subjected to quality and relevance assessments, based on their listing in the Academic Journal Rating (AJG) 2021 and/or Scimago Journal Rating (SJR) 2022 rated journals. Analyses This SLR looks at seven EAR dimensions through a comparative lens of developed and developing economies. These dimensions cover EAR characteristics, five key stakeholders, and associated theoretical perspectives. Thematic analysis synthesizes the literature to identify gaps and propose avenues for future research. Findings The SLR shows that external auditors and auditee characteristics influence EAR disclosure. Existing literature in developed economies reports diverse findings on EAR's communicative value to investors and its impact on the market, while studies in developing economies report a market reaction and indicate informativeness. Research from both types of economies reports promising results regarding decreased earnings management behavior and increased financial reporting quality. Finally, the review suggests seven major areas for future research.