| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 106 === Due to the global financial crisis, the usefulness of the standardized auditor’s reports is questioned. Many audit regulators have taken steps to change the auditor’s report which would require the disclosure of key audit matters (KAM).Taiwan auditing standards committee issued the Statements on Auditing Standards (SAS) No.57 and No.58, and financial supervisory commission R.O.C. requested listed company to apply to new auditor’s report in fiscal year ending 2016.
The purpose of this study is to examine whether the informativeness of financial statements would increase after adopting new auditor’s report, and how it would change regarding different expression quality of KAM with perspective of investor. We select two year (2015 and 2016) and one year (2016) Taiwan listed companies as sample, and use disclosure number and disclosure quality which was established based on six standards as proxy for expression quality of KAM. Our empirical evidence shows that after adopting new auditor’s report, financial statements become more informative. But the informativeness of financial statements become weaker when the company’s expression quality of KAM is higher. Next, in the one year sample, we also find the higher expression quality, the smaller financial statements Informativeness. These conclusion indicate that investors regard KAM as risk indicator which means when expression quality is better implied that the company is more risker and its accounting information is less reliable.
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