Consequences of Expanded Audit Reports: Evidence from the Justifications of Assessments in France

Détails

ID Serval
serval:BIB_4D8C72346C52
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Consequences of Expanded Audit Reports: Evidence from the Justifications of Assessments in France
Périodique
AUDITING: A Journal of Practice & Theory
Auteur(s)
Bédard J., Gonthier-Besacier N., Schatt A.
ISSN
0278-0380
1558-7991
Statut éditorial
Publié
Date de publication
2019
Peer-reviewed
Oui
Volume
38
Numéro
3
Pages
23-45
Langue
anglais
Résumé
Since 2003, French auditors must disclose justifications of assessments (JOAs) in expanded audit reports. Like critical audit matters recently introduced in the US and key audit matters introduced by international standard setters, the purpose of JOAs is to enhance the informative value of audit reports. Based on French audit reports issued from 2002 to 2011, we analyze the impact of first-time implementation of JOAs, and the impact of new JOAs in subsequent years, on investors (measured by abnormal returns and abnormal trading volume) and on the audit (measured by audit report lag, abnormal accruals, and audit fees). For both first-time implementation of JOAs and new JOAs in subsequent years we find no significant market reaction to their disclosure and no significant effect on audit report lag, audit quality and audit fees. Overall, our results suggest that the French expanded audit report did not have the expected consequences on investors and the audit.
Mots-clé
Economics and Econometrics, Accounting, Finance
Création de la notice
19/12/2018 14:05
Dernière modification de la notice
30/09/2019 10:43
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