| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 106 === The outbreak of 2008 global financial crisis negatively impacts every countries’ economies. These facts show that the traditonal audit reports even could not effectively reflect the information of investment risk. As a result, several institutions and governments around the world have embarked on the reform of audit report. Taiwan government also requires listed firms to adopt the new-type audit report from 2016 and public companies can defer this adoption to July 2018. This study aims to explore the relationship between key audit matters and accrual-based earnings management, the substitute or complementary relationship between accrual-based earnings management and real earnings management, as well as whether the key audit matters can weakened this relationship.
The sample consists of listed firms in Taiwan from 2012 to 2017. The empirical results show that accrual-based earnings management of the companies with the key audit matters of the new audit report were less than that of companies without the key audit matters of the new audit report. In addition, this study also finds that there is a complementary relationship between accrual-based earnings management and real earnings management, and the adption of the new audit report inhibited this relationship.
Furthermore, this study performs several sensitivity tests, including replacing the dummy variable of key audit matters with the number of key audit matters items / the word counts of key audit matters, and using another earnings management proxies. The empirical results of these sensitivity tests are similar to the main empirical results.
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