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Thailand Federation of Accounting Profession under The Royal Patronage of His Majesty The King has issued Thai Standard on Auditing 700 (Revised): Forming and Opinion and Reporting on Financial Statements and 701: Communicating Key Audit Matters in the Independent Auditor’s Report which are effective for audits of financial statements for periods ended on or after December 31, 2016. A significant change to an auditor’s report under this standard is the requirement for auditors to disclose key audit matters in auditors’ reports. This is a part of an attempt of the International Auditing and Assurance Standards Board to improve the communication value of the audit report. However, to date, the study on the communication value of key audit matters is limited.
This study aims to examine the communication value of key audit matters of companies in resources and technology industries listed on The Stock Exchange of Thailand. The data for an analysis is collected from auditors’ reports and financial statements during 2015-2017, resulting in 239 observations. The communication value is considered from readability and tone. The results show that the expanded auditor’s report which discloses key audit matters is more readable and has more negative tone than which without key audit matters.
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