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The Effect of Repeated Critical Audit Matter Disclosures on Investors’ Judgments

HUN-TONG TAN & Feng Yeo

Behavioral Research in Accounting2026https://doi.org/10.2308/bria-2025-004article
AJG 3ABDC A
Weight
0.50

Abstract

Certain audit issues could recur across multiple periods resulting in repeated critical audit matter (CAM) disclosures over time. Although the negative effect of a first-time CAM disclosure on investors’ judgments is well established, little is known about the effect of CAMs when these disclosures are repeated. We experimentally examine the effect of CAM repetition on investors. We predict and find that a repeated CAM disclosure loses its prominence and has a smaller negative effect on investment judgments. Our additional analyses from a within-participants setting suggest that making the CAM repetition salient changes how investors perceive the reasons for the repetition, but does not change the effect of repetition on their investment judgments. JEL Classifications: M41; M42; M48.

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https://doi.org/https://doi.org/10.2308/bria-2025-004

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@article{hun-tong2026,
  title        = {{The Effect of Repeated Critical Audit Matter Disclosures on Investors’ Judgments}},
  author       = {HUN-TONG TAN & Feng Yeo},
  journal      = {Behavioral Research in Accounting},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.2308/bria-2025-004},
}

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The Effect of Repeated Critical Audit Matter Disclosures on Investors’ Judgments

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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