The Relationship between Key Audit Matters and Earnings Management

• Main Authors: Yang Li, 李揚
• Other Authors: Teng-Sheng Sang
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/knbb2p

碩士 === 中原大學 === 會計研究所 === 106 === Financial statements are an important reference for investors when making decisions. Since the financial crisis, fraudulent financial reports have been reported. The company’s investors have no confidence in the financial statements. They hope that the CPA check report can provide more relevant and transparent information to promote Check the report''s communication value. In order to meet the needs and expectations of interested parties, the International Auditing Standards Board (IAASB) issued revised international auditing standards "Accountants'' Audit Report" and related auditing standard communiques. In order to improve competitiveness in line with international standards, Taiwan also refers to ISA 701 update audit. Guideline Communiqué Nos. 57 and 58 apply the new check report requirements starting from year 105.The purpose of this study is to discuss the contents of the audit report disclosure of auditors'' implementation of the communique and the relationship with the company''s level of earnings management. And want to know whether the level of earnings management of the company will affect the accountants'' exposure of key audit matters? The results of the study showed that after controlling the endogenousness of the earnings management variables through the two-stage approach of the instrument variables, the level of earnings management was significantly negatively correlated with the number of accounting subjects exposed in the key auditing matters of the accountants audit report. It means that the lower the company''s earnings management, the more the accountant will provide more information to the users of the report through the disclosure of key audit matters.