Can Auditors Identify the Risk Signals Delivered in Analysts’ Forecast：A Textual Analysis Based on the Tone of Key Audit Matters

Abstract

Abstract: Taking China’s A-share listed companies from 2017 to 2018 as the samples, this paper studies the impact of risk signals forecast by analysts on the tone of key audit matters, which derives from the gap between analysts’ earnings forecast and auditors’ earnings expectations. The findings show that the higher the analysts’ forecast risks are, the more negative the tone of key audit matters will be. Media supervision has a positive moderating effect on the negative correlation between the two; while the quality of analysts’ forecasts has a negative moderating effect on the negative correlation between the two. The result of further mechanism study indicates that it is by revealing the earnings management risks that the analysts’ forecast risks will affect the tone of key audit matters.

Key words: risks forecast by analysts, tone of key audit matters, content analysis method

CLC Number:

F239.1

LIAO Yi-gang, YANG Yu-xin. Can Auditors Identify the Risk Signals Delivered in Analysts’ Forecast：A Textual Analysis Based on the Tone of Key Audit Matters[J]. Contemporary Finance & Economics, 2021, 0(1): 137-148.

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