How Do U.S. Critical Audit Matter Disclosures Impact Financial Reports?

Summary

Audit and Assurance Financial Accounting Accounting and Reporting

Investigating the impact of U.S. critical audit matter (CAM) disclosures, this study explores adjustments in financial reports and market reactions. It notes significant changes in footnotes due to CAM scrutiny but finds CAMs generally don't provide new market information, except for negative reactions to unexpected disclosures.