| Summary: | 碩士 === 國立成功大學 === 會計學系 === 106 === This paper begins from the view of analysts and discusses whether the extended audit report achieves the goal of transferring information. Therefore, the analyst forecast properties, including analyst forecast accuracy and analyst forecast dispersions, are considered to examine the relations between the extended audit report and analyst forecast properties. Since the United Kingdom (UK) is the first country to apply the extended audit report, this study used the UK as a sample to test for changes in the analyst forecast properties before and after the extended audit report was implemented.
The empirical results showed that compared with AIM companies that are not required to issue extended audit reports, premium companies that are required to issue extended audit reports have lower analyst forecast accuracy and higher levels of analyst forecast dispersion. This result supports the view that extended audit reports increase information processing costs. Furthermore, this study linked the readability, the number of key audit matters, and the information processing cost to examine correlations with analyst forecast properties. These additional results indicated that companies with lower readability and disclosing more key audit matters, have less analyst forecast accuracy and higher analyst forecast dispersion. This result reinforces the view that the extended audit report leads to more information processing cost to analysts than benefits.
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