Global Journal of Management and Business Research, D: Accounting and Auditing, Volume 22 Issue 2

These results show that the market is reacting to this bad news. However, this negative impact is less significant than when the reservations are clearly expressed by the auditors in the annual reports. Insofar as these unmentioned reservations are expressed in the form of an observation or a remark which turns into a reservation in the following years, the market may interpret these observations or these remarks as valid reservations. One of the significant difficulties concerning the interpretation of the reports of French auditors is the existence of several types of information such as observation, remark, observation, etc., that are not expressed in a standardized form. While the existence of such data in auditors' reports is considered valuable, it may increase the risk of misunderstanding by investors and other interested parties. c) The reservations expressed by the auditors on the accounts of several years i. The informative content of the first reservation issued by the statutory auditors When the auditor notices errors, anomalies, or irregularities in the accounting principles application or when he sees one or more uncertainties affecting the annual or consolidated accounts, he expresses his opinion on the statement with a reservation. In subsequent years, the company is likely to take into account the opinion expressed by the auditor and correct any errors or anomalies mentioned in his report. However, there are several cases where the auditor says reservations about the accounts of a company for several successive years. For example, in the previous case, when anomalies that led to reservations or refusal to certify the annual or consolidated accounts for the previous financial year no longer exist at the end of the financial year, the auditor must examine the consequences possible of the impact of the reservations made on the accounts of the previous financial year. Another example relates to the anomaly or error that gave rise to a reservation that remains. In order to determine the effect of the reservation expressed for the first time in the reports of the Statutory Auditors, the event tests are carried out on all the companies in the sample for which one or more reservations are expressed for the first time. This is consistent with the study done by DDHL, which consider only the first public announcement of a reserve. Table 5: Announcement of reservations and refusal to certify issued for the first time Date Excess return T-test Cumulative excess T-test on cumulative -5 -0,08 -0,43 -0,60 -0,67 -4 0,15 0,89 -0,45 -0,49 -3 -0,04 -0,24 -0,49 -0,53 -2 -0,05 -0,30 -0,54 -0,57 -1 -0,31 -1,78 -86 -0,89 0 0,25 1,44 -0,60 -0,62 1 -0,19 -1,07 -0,78 -0,79 2 0,11 0,61 -0,68 -0,68 3- -0,38 -2,16 -1,06 -1,04 4 -0,05 -0,28 -1,11 -1,07 5 -0,05 -0,31 -1,16 -1,11 6 -0,43 -2,44 -1,59 -1,49 7 0,04 0,25 -1,54 -1,43 8 -0,25 -1,44 -1,79 -1,64 9 0,36 2,07 -1,43 -1,30 10 -0,35 -1,99 -1,78 -1,59 Note: Returns (excess and cumulative) are expressed as a percentage. One hundred ten events are used. The supposed announcement date is set 15 days before the GA date. Abnormal returns are defined regarding the market model. ( = + + ). Table 5 shows the average abnormal returns around the first event date (AG - 15) using the simple market model. As this table shows, average abnormal returns are negative around the event date. These returns are significant, particularly on the third day after the event date (-0.38% with a Student's t of 2.16) and on date, t6 (-0.43% with a Student's t of 2.44). Informational Performance of Audit Reports Content: Case of French Companies Listed on the Stock Exchange during the Decade 2010-2020 10 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals