The Impact of Auditor Specialization on the Quality of Key Audit Aspects (KAMs): The Mediating Role of Professional JudgmentA Field Study of Audit Firms and Companies in Syria

Abstract

This research aims to evaluate the role of auditors^, professional judgment as a mediating variable in the relationship between sector specialization and the quality of Key Audit Matters disclosure in audit frims and companies operating in Syria.

to achieve the study^,s objectives, a descriptive approach was adopted. The research distributed 270 qusetionnaires to external auditors working in Syria, and 226 valid questionnaires were returned, representing a response rate of 83.70%. SPSS version 25 was used to analyze the data.

The results showed that Professional Judgment has a significant impact on the quality of Key Audit Matters disclosure, and that including it as a mediating variable strengthens the relationship betweeen the auditor^,s industry specialization and KAM disclosure quality. this indicates that the quality of financial reports transcends traditional quantitative measures, as it depends largely on the auditor^,s ability to utilize their industry expertise and knowledge, and to refine their professional judgment to identify and clearly articulate material matters in KAM disclosure.

Based on the positive rrlationship between industry specialization and KAM disclosure quality, the study recommends that regulatory policies for audit frims and companies be supported. Regulatory bodies and Financial institutions are advised to encourage industry specialization practices and ensure the continuity of training and periodic evaluation of auditors.