KEY AUDIT MATTERS DISCLOSURE AND MARKET VALUE OF THAI LISTED COMPANIES
Keywords:
Auditors’ Reports, Keys Audit Matters, Market ValueAbstract
The Key Audit Matters (KAMs) have been disclosed in the auditor's report by auditing standards. It is practical information for decision making, and it also affects enterprise market value. The purposes of this research aim to study the disclosure of KAMs in the auditors’ report and to study the relationship between the disclosure of KAMs and enterprise market value of the Thai listed companies from 2016 to 2017. The results of the disclosure of KAMs in the auditors’ report found that the most frequently reported in KAM topics are revenue recognition. The most frequently audit techniques mentioned in the KAM disclosure are document inspection and physical inspection of tangible assets. The most important reason to determine KAMs is the sophisticated estimates made by management. The most frequent reference mentioned in the KAM disclosure is the note to the financial statement. Concerning the KAM disclosure format, KAMs were disclosed using tabular more than narrative. The relationship between the disclosure of KAMs and the market value, the results found that the disclosures of allowance for accounts doubtful and confirmation techniques are the positive relationship, but the disclosures of goodwill impairment and inventory impairment are the negative relationship. The outcome of this study will be useful for auditors to consider the disclosure of KAMs in auditors’ report. It also makes more benefit for the monitoring bodies to scrutinize the guideline for auditors and it will be an advantage for decision making of the users
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