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研究成果
研究成果
Working Paper Series 2021-12 Do key audit matters communicate uncertainty information in earnings to investors?
研究成果名稱：
Working Paper Series 2021-12 Do key audit matters communicate uncertainty information in earnings to investors?摘 要：
International Standards on Auditing
701 specifies that k ey audit matters (KAMs)
refer to those matters that, in the auditor’s professional judgment, were of most
significance in the audit ed financial s tatements We propose that KAMs facilitate the
auditor’s communication with investors by delivering uncertainty information, as
reflected in earnings response coefficients (ERCs) varying with KAM characteristics.
Our empirical a nalyse s indicate that firms with fewer KAMs or with the majority of
KAMs being firm specific a re associated with greater ERCs Additionally, for firms
that undergo substantial operational changes, a higher percentage of recurring KAMs
significan tly decreases ERCs, suggesting that investors expect the KAM reporting to
correspond with the changes in operations. Collectively, the evidence shows that t he
standard s objective, directing investors’ attention to areas of significance, is
preliminarily a chieved . Besides , auditor s should provide more firm specific, rather
than generic KAMs in order to enhance the communicative value of the auditor s
report.