The Association between Key Audit Matters Disclosure and Corporate Risks: Evidence from Hong Kong

• Main Authors: Sun, Yi-An, 孫怡安
• Other Authors: 林宛瑩
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/phyg5d

碩士 === 國立政治大學 === 會計學系 === 106 === Audit report is the channel which auditors communicate their audit process and results with investors. The standards setting organizations recently have released new guildline, requiring auditors to disclose more information to help users understand the most important part for the corporation, have a better understanding of the audit process and improve the communication value of the audit report. The most influential aspect of the new audit report mainly requires auditors to disclose Key Audit Matter （KAM） in the auditor report of the listed company’s financial statements. Key audit matters are things that in the auditor’s judgment are of most significance in the audit of the current period financial statements. This study measures the relevance between the disclosure of key audit matters and corporate risks. Using Hong Kong listed companies as samples, this study discusses whether the number and length of key audit matters reflect the risks of companies. The empirical results show that the disclosure of key auditing matters will be affected by the characteristics of the industry and accounting information, and the number of key audit matters and the length of it will both reflect the financial risks and litigation risks of the company.