| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 99 === As world competitions within industry strengthen, patent-related law suits have also increased these days. After the adoption of TSFAS No. 37 and No. 35, Taiwanese companies need to test patent impairment every year, which makes asset valuation complicated and increases patent information uncertainty. While bringing more room for earnings management, it also reduces financial reporting quality. To enhance users’ confidence, management needs to choose auditors of higher credibility. This study first analyzes patent disclosure information of publicly listed Taiwanese companies for the latest 10 years, and examines how the materiality of patent assets influences companies’ choice of specialist auditors.
We find that the more important the materiality of a company’s patent assets, the more likely it will choose to hire a specialized auditor, being a large firm, an industry specialist, or an account specialist auditor. The significant positive association between patent materiality and choices of specialized auditors is mainly effected by the adoption of TSFAS No. 35.
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