A Study on the Association between Key Audit Matters and Earnings Response Coefficient

• Main Authors: TSENG, SHAO-YU, 曾紹瑜
• Other Authors: YANG, MENG-PING
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/3gbf6u

碩士 === 東吳大學 === 會計學系 === 106 === Company’s financial report is one of the important information sources to realize the operating performance of investment targets. Accountants conducted audit procedures and stated opinions giving the company’s financial report its credibility. Audit reports play a significant role in capital market. However, the audit reports with three paragraphs clearly cannot reflect in diverse society and the function of communicating information has become weaken. Thus, International Auditing and Assurance Standards Board reformed audit reports and released ISA 700, 701, and relating standards in 2015. The Accounting Research and Development Foundation in Taiwan referred IAASB standards to revise our audit standards and release NO.57 “Audit report on financial statement” & NO.58 “Communicating key audit matters in the independent auditors’ report”. Key audit matters let audit report users realize important things during accountants’ audit procedure. Our study believes that disclosing key audit matters can enhance information contents and improve the audit quality to increase the willing of investments and the reliability of financial report earnings. We aimed at listed company’s new audit report with key audit matters in Taiwan in 2016, and used unexpected earning’s coefficient to represent the earnings response coefficient. We analyzed the impact on earnings response coefficient by discussing the disclosure of key audit matters or not, the number of key audit matters, and the suitability of key audit matters. According to our empirical result, we found that the suitability of key audit matters had significantly positive relative to earnings response coefficient.