| Summary: | 碩士 === 國立中正大學 === 會計與資訊科技研究所 === 107 === Taiwan implements the new auditor’s report in fiscal year 2016. The new report includes a new paragraph, Key Audit Matters (KAM), which is expected to increase the information value of auditor’s report. This study investigates the association between directors’ and officers’ liability insurance (D&O insurance) and the degree of KAM disclosure. This paper mainly discusses the following three questions: (1) Whether buying D&O insurance or not affects the degree of KAM disclosure. (2) For the enterprises that have bought D&O insurance, whether the insured amount affects the degree of KAM disclosure. (3) For the enterprises that have bought D&O insurance, whether higher abnormal insured amount is associated with higher degree of KAM disclosure. The data was collected from listed firms in Taiwan Stock Exchange and Taipei Exchange during 2016 to 2017 (excluding financial sector and KY company).
The empirical results show that (1) Buying D&O insurance or not does not have significant influence on the level of KAM disclosure (2) For the enterprises that have bought D&O insurance, the insured amount has positively significant influence on the level of KAM disclosure. (3) For the enterprises that have bought D&O insurance, the abnormal insured amount does not have significant influence on the level of KAM disclosure. Based on the empirical results, this study suggests that auditors consider D&O insurance as an important audit matter and incorporate related discussion into KAM to increase the information value of auditor's report in the future.
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