Communication Value of Key Audit Matters of Companies Listed on Market for Alternative Investment
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Published:
Apr 9, 2021
Keywords:
Communication Value Key Audit Matter Market for Alternative Investment (mai)
Main Article Content
Abstract
This study aimed to examine the communication value of key audit matters of companies listed on Market for Alternative Investment. The data was collected from financial statements and auditor’s reports in English version of companies listed on Market for Alternative Investment between 2015, 2016 and 2017. Multiple regression analysis was used to analyze the data. Communication value was considered from readability and tone which were measured by Fog Index and Tone Index, respectively.
The result showed that 1) auditor’s reports with key audit matters were more readable and had more negative tone than auditor’s reports without key audit matters. 2) readability and tone of auditor’s reports with key audit matters in the first year and the later year were not different.
Article Details
Section
บทความวิจัย (Research article)
References
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Datejarutsri, P., Sampet, J. & Kosaiyakanont, A. (2019). Communication value of key audit matters in auditor’s report of companies in resources and technology industries listed on The Stock Exchange of Thailand. Modern Management Journal. 17(1), 43-55.
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Gunning, R. (1952). The technique of clear writing. New York: McGraw-Hill.
Hatherly, D., Brown, T., & Innes, J. (1998). Free-form reporting and perceptions of the audit. British Accounting Review. 30, 23-38.
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Kutmuang, K., Sarapaiwanich, N., Jitaree, W. & Suwanmongkok, W. (2019). Communication value of key audit matters in auditor’s report of companies in industrial industry listed on The Stock Exchange of Thailand. Journal of Business, Economics and Communications. 14(3), 116-132.
Li, F. (2008). Annual report readability, current earnings and earnings persistence. Journal of Accounting and Economics. 45, 221-247.
Loughran, T. & McDonald, B. (2014). Measuring readability in financial disclosures. The Journal of Finance. 69(4), 1643-1671.
Matsumoto, D., Pronk, M., & Roelofsen, E. (2011). What makes conference calls useful? The information content of managers’ presentations and analysts’ discussion sessions. The Accounting Review. 86, 1383-1414.
Meechumnan, P., Sarapaivanich, N., Tulardilok, T. & Sittisombut, M. (2019). Communication value of key audit matters of companies in Property and Construction industry group listed on The Stock Exchange of Thailand. WMS Journal of Management. 8(4), 55-69.
Pinto, I. & Morais, A. I. (2019). What matters in disclosures of key audit matters: evidence from Europe. Journal of International Financial Management & Accounting. 30(2), 145-162.
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Smith, J. E. & Smith, N. P. (1971). Readability: a measure of the performance of the communication function of financial reporting. The Accounting Review. 46, 552-561.
Srijunpetch, S. (2017). Key audit matters in an auditor’s report and response of The Stock Exchange of Thailand. Journal of Accounting Profession. 13(38), 22-37.
Tangruenrat, C. (2015a). The value of new auditor’s report. Journal of Accounting Profession. 11(31), 26-44.
Tangruenrat, C. (2015b). Key aspects and applications of key audit matters. Journal of Accounting Profession. 11(32), 112-127.
Tangruenrat, C. (2017). New auditor’s report: The 1st-year experience. Journal of Accounting Profession. 13(38), 5-21.
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TFAC (Federation of Accounting Professions Under The Royal Patronage of His Majesty The King). (2017). The new auditor’s report: Greater Transparency into the financial statement audit. [Online], Available; http://www.tfac.or.th/upload/9414/48XZM7P3Ca.pdf. [March, 2017].
TFAC (Federation of Accounting Professions Under The Royal Patronage of His Majesty The King). (2019). TSA701 Communicating Key Audit Matters in the Independent Auditor’s Report. [Online], Available; http://www.fap.or.th/upload/9414/4x9uV7CGE1.pdf. [June, 2019].
Datejarutsri, P., Sampet, J. & Kosaiyakanont, A. (2019). Communication value of key audit matters in auditor’s report of companies in resources and technology industries listed on The Stock Exchange of Thailand. Modern Management Journal. 17(1), 43-55.
De Franco, G., Hope, O. K., Vyas, D., & Zhou, Y. (2015). Analyst report readability. Contemporary Accounting Research. 32, 76-104.
Gunning, R. (1952). The technique of clear writing. New York: McGraw-Hill.
Hatherly, D., Brown, T., & Innes, J. (1998). Free-form reporting and perceptions of the audit. British Accounting Review. 30, 23-38.
Henry, E. (2008). Are investors influenced by how earnings press releases are written? Journal of Business Communication. 45, 363-407.
Kutmuang, K., Sarapaiwanich, N., Jitaree, W. & Suwanmongkok, W. (2019). Communication value of key audit matters in auditor’s report of companies in industrial industry listed on The Stock Exchange of Thailand. Journal of Business, Economics and Communications. 14(3), 116-132.
Li, F. (2008). Annual report readability, current earnings and earnings persistence. Journal of Accounting and Economics. 45, 221-247.
Loughran, T. & McDonald, B. (2014). Measuring readability in financial disclosures. The Journal of Finance. 69(4), 1643-1671.
Matsumoto, D., Pronk, M., & Roelofsen, E. (2011). What makes conference calls useful? The information content of managers’ presentations and analysts’ discussion sessions. The Accounting Review. 86, 1383-1414.
Meechumnan, P., Sarapaivanich, N., Tulardilok, T. & Sittisombut, M. (2019). Communication value of key audit matters of companies in Property and Construction industry group listed on The Stock Exchange of Thailand. WMS Journal of Management. 8(4), 55-69.
Pinto, I. & Morais, A. I. (2019). What matters in disclosures of key audit matters: evidence from Europe. Journal of International Financial Management & Accounting. 30(2), 145-162.
Smith, K. W. (2016). Tell me more: a content analysis of expanded auditor reporting in the United Kingdom, Working Paper. [Online], Available; https://papers.ssrn.com/sol3/ papers.cfm?abstract_id =2821399. [December 2018].
Smith, J. E. & Smith, N. P. (1971). Readability: a measure of the performance of the communication function of financial reporting. The Accounting Review. 46, 552-561.
Srijunpetch, S. (2017). Key audit matters in an auditor’s report and response of The Stock Exchange of Thailand. Journal of Accounting Profession. 13(38), 22-37.
Tangruenrat, C. (2015a). The value of new auditor’s report. Journal of Accounting Profession. 11(31), 26-44.
Tangruenrat, C. (2015b). Key aspects and applications of key audit matters. Journal of Accounting Profession. 11(32), 112-127.
Tangruenrat, C. (2017). New auditor’s report: The 1st-year experience. Journal of Accounting Profession. 13(38), 5-21.
Thai Credit Guarantee Cooperation. (2017). Market for Alternative Investment (mai). [Online], Available; http://www.tcg.or.th/. [March, 2017]
The Stock Exchange of Thailand. (2018). Mission & Vision. [Online], Available; https://www.set.or.th/mai/th/about/vision.html. [February, 2018].
TFAC (Federation of Accounting Professions Under The Royal Patronage of His Majesty The King). (2017). The new auditor’s report: Greater Transparency into the financial statement audit. [Online], Available; http://www.tfac.or.th/upload/9414/48XZM7P3Ca.pdf. [March, 2017].
TFAC (Federation of Accounting Professions Under The Royal Patronage of His Majesty The King). (2019). TSA701 Communicating Key Audit Matters in the Independent Auditor’s Report. [Online], Available; http://www.fap.or.th/upload/9414/4x9uV7CGE1.pdf. [June, 2019].