1. NCCU Academic Hub
  2. 學術產出
  3. College of Commerce
  4. Periodical Articles
  5. Item

學術產出-Periodical Articles

Article View/Open

Publication Export

Google ScholarTM

政大圖書館

Citation Infomation

題名 Is Client-Specific Information Useful to Investors? Evidence From Key Audit Matter Reports
作者 戚務君;張祐慈
Chi, Wuchun;Chang, Yu-Tzu
Stone, Dan N.
貢獻者 會計系
關鍵詞 Key Audit Matters; text analysis; client-specific information; perceived financial reporting quality
日期 2022-04
上傳時間 31-Jan-2023 16:32:30 (UTC+8)
摘要 The goal of the mandatory disclosure of Key Audit Matters (KAMs) in the extended audit report is to provide relevant, client-specific information and thereby add value to the audit report. But mixed results fuel debate about the informativeness of expanded audit reports, particularly the disclosure of KAMs. This study employs text analysis to examine whether and how the information content of KAMs is associated with investor perceptions of financial reporting quality, as proxied by earnings response coefficients. Specifically, using a sample of KAMs disclosed in Taiwanese audit reports (for fiscal years 2016 and 2017), companies with KAMs that contain more client-specific information are perceived as having lower reporting quality. We further note that this association is driven by the risk-related description in KAMs. Additional analyses indicate that our textual measure is associated with actual financial reporting quality, as proxied by abnormal accruals and the likelihood of misstatements. Overall, our results provide evidence supporting the information value of KAMs in the Taiwanese audit market. This study contributes by suggesting the value of the expanded audit report.
關聯 Journal of Accounting, Auditing & Finance
資料類型 article
DOI https://doi.org/10.1177/0148558X221091804
dc.contributor 會計系
dc.creator (作者) 戚務君;張祐慈
dc.creator (作者) Chi, Wuchun;Chang, Yu-Tzu
dc.creator (作者) Stone, Dan N.
dc.date (日期) 2022-04
dc.date.accessioned 31-Jan-2023 16:32:30 (UTC+8)-
dc.date.available 31-Jan-2023 16:32:30 (UTC+8)-
dc.date.issued (上傳時間) 31-Jan-2023 16:32:30 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/143128-
dc.description.abstract (摘要) The goal of the mandatory disclosure of Key Audit Matters (KAMs) in the extended audit report is to provide relevant, client-specific information and thereby add value to the audit report. But mixed results fuel debate about the informativeness of expanded audit reports, particularly the disclosure of KAMs. This study employs text analysis to examine whether and how the information content of KAMs is associated with investor perceptions of financial reporting quality, as proxied by earnings response coefficients. Specifically, using a sample of KAMs disclosed in Taiwanese audit reports (for fiscal years 2016 and 2017), companies with KAMs that contain more client-specific information are perceived as having lower reporting quality. We further note that this association is driven by the risk-related description in KAMs. Additional analyses indicate that our textual measure is associated with actual financial reporting quality, as proxied by abnormal accruals and the likelihood of misstatements. Overall, our results provide evidence supporting the information value of KAMs in the Taiwanese audit market. This study contributes by suggesting the value of the expanded audit report.
dc.format.extent 105 bytes-
dc.format.mimetype text/html-
dc.relation (關聯) Journal of Accounting, Auditing & Finance
dc.subject (關鍵詞) Key Audit Matters; text analysis; client-specific information; perceived financial reporting quality
dc.title (題名) Is Client-Specific Information Useful to Investors? Evidence From Key Audit Matter Reports
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1177/0148558X221091804
dc.doi.uri (DOI) https://doi.org/10.1177/0148558X221091804