审计
会计
财务报表
相关性(法律)
业务
审计报告
主题
精算学
经济
政治学
法学
课程
经济增长
作者
Jenna Burke,Rani Hoitash,Udi Hoitash,Summer Xiao
出处
期刊:The Accounting Review
[American Accounting Association]
日期:2023-03-01
卷期号:98 (2): 59-95
被引量:30
标识
DOI:10.2308/tar-2021-0013
摘要
ABSTRACT This study uses difference-in-differences (DiD) analyses to examine the consequences of adopting the U.S. critical audit matter (CAM) disclosure requirement for preparers and users of financial reports. The CAM requirement is one of the largest expansions of the U.S. audit report since the 1940s. We document significant changes to financial statement footnotes referenced by CAMs, which suggests an indirect consequence where management disclosure changes in areas that are expected to be scrutinized following auditor-provided disclosure. Results also suggest that, on average, CAM disclosures do not provide incremental information to the market. To further examine market reaction, we develop well-specified prediction models for the expected number and subject areas of CAMs. We find limited initial evidence that the market reacts negatively when unexpected CAMs are disclosed. Overall, our findings provide insights on the new CAM standard and particularly demonstrate its relevance to management disclosure decisions and to the market.
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