The market response of Key Audit Matters
碩士 === 銘傳大學 === 會計學系碩士班 === 106 === This paper only focuses on how market reacts on Key Audit Matters(KAMs). We construct a sample from the audit reports of firms listed on Taiwan Stock Exchange in 2016. First, we collect the first-time disclosure KAMs numbers and types of the sample firms, then we...
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| Other Authors: | |
| Format: | Others |
| Language: | zh-TW |
| Published: |
2018
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| Online Access: | http://ndltd.ncl.edu.tw/handle/9u52ae |
| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 106 === This paper only focuses on how market reacts on Key Audit Matters(KAMs). We construct a sample from the audit reports of firms listed on Taiwan Stock Exchange in 2016. First, we collect the first-time disclosure KAMs numbers and types of the sample firms, then we describe KAMs by audit firms and industries. Secondly, we examine the impact of KAMs on the market price. We expect KAMs could help users make the wise decisions because KAMs are based on the auditors’ professional judgments and they are considered as the most important matters in the auditing current-period financial statements. Therefore, we expect market could reacts to the first-time disclosure of KAMs. We use three-day and five-day cumulative abnormal returns measure the market responses. The evidence shows that market has negative reaction to specific KAMs related to going-concern and internal control weakness issues.
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