Key Audit Matters and Audit Fee

• Main Authors: CHOU, FANG-HSIU, 周芳秀
• Other Authors: Fan, Hung-Shu
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/fm6pth

碩士 === 輔仁大學 === 會計學系碩士班 === 106 === The International Auditing and Assurance Standards Board (IAASB) has released its new and revised audit report standards ISA700 and 701 in 2015. They have been effective for audits of financial statements since 2016. Will audit fee be increased as a result of these new and revised standards adoption? The purpose of this study is to conduct an empirical analysis to explore the impact of applying key audit matters on audit fee. The sample consists of 2015~2016 listed firms in Taiwan. The empirical result shows that the audit fee for the companies with more word counts of key audit matters is higher than that of the companies without key audit matters. This study also conducts several sensitivity analyses. The sensitivity tests include (1) replacing the word counts of key audit matters with the dummy variable of key audit matters, (2) replacing the word counts of key audit matters with the item counts of key audit matters, (3) incorporating non-audit fee control variables, (4) incorporating non-audit fee and electronic industry dummy variables. The empirical results of these sensitivity tests are similar to the main test.