Document Type : Research Article



Purpose-The main objective of the study to propose Audit Data Analytic Tools (ADA)
to develop the role of the External Auditor in enhancing the communication of the
Expected Credit Loss (ECL) estimate as a very complex and subjective item of Critical
Audit Matters (CAMS) of the New Audit Report.
Design/methodology/approach- The study depends on uses of the field approach
through a questionnaire distributed by the researcher to academic staff members of
some selected universities and the audit professionals whether the internal auditors in
banks listed and controlled by the Egyptian central bank & the external auditors
registered in the financial regulatory authority of the big auditing firm in Egypt with
expertise in the banking industry sector ( i.e Pwc, KPMG ,Grand Thorton ,EY) to test
the relevance of the proposed framework for CAMS communication.
Findings-The findings of the study show the significant importance of ECL i.e.,CAMS
Communication to the financial statement users as it promotes the user to the audit
report and finally improves the understanding and relevance of the related financial
statements. Thus,When the CAMS disclosures in the audit report are provide, investors
may be more confident that the auditors have determined and appropriately addressed
the most highly risky assertions in the financial statements which reflect on the audit
Originality/value-This study contributes to the audit literature by proposing a suitable
Audit Data analytics tool (tools) to develop an independent estimate (i.e. Point of
estimate) for the new ECL as a very complex and subjective CAMS item in order to
stand on its reasonableness by the external auditor. As well as proposing the relevant
form for communicating such information as a CAMS in the l audit report.