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

Table 9: Announcement of reservations “limitation of work” Date Excess return T-test Cumulative excess T-test on cumulative -5 -0,52 -0,99 -0,67 -0,25 -4 -0,79 -1,50 -1,47 -0,54 -3 -0,58 -1,08 -2,04 -0,73 -2 0,34 0,65 -1,70 -0,60 -1 -0,14 -0,26 -1,83 -0,64 0 -0,31 -0,59 -2,14 -0,73 1 -1,16 -2,21 -3,31 -1,11 2 -0,69 -1,31 -3,99 -,132 3 -1,16 -2,20 -5,15 -1,68 4 0,46 0,88 -4,69 -1,51 5 0,12 0,23 -4,57 -1,45 6 -1,22 -2,23 -5,79 -1,81 7 -0,12 -0,23 -5,91 -1,82 8 0,02 0,04 -5,89 -1,78 9 0,37 0,71 -5,51 -1,66 10 -1,01 -1,92 -6,52 -1,94 Note: The returns (excess and cumulative) are expressed in percentages. Twenty-fiveevents are used. The assumed announcement date is set 15 days before the AGM date - Abnormal returns are defined regardingthe Dimson model, according to the specification: , = + ∑ , − − + , +2=−2 ; With RM the index returns, and e the excess returns. Limitations may be imposed by circumstances or by company management. In the first case, the statutory auditor could notcarry out the due diligence he considered necessary. This type of certification is used when the limitation, although significant, is insufficient to refuse to certify. For example, the appointment of the auditor after the end of the financial year prevented him from attending the physical inventories, and he was unable to ascertain the quantities by other means of control. In the second case, the elements of limitation constitute the offense of obstructing the mission of the auditor and must therefore be exceptional. In general, during the interview on the terms of implementation of the mission, the managers must be informed of the consequences of such a limitation on the general report. As an example, we can also cite the case where the management refuses the auditor to send documents confirming the balances when he considers this procedure essential. Out of 304 reserves used to perform event tests, 39 are used for limitation reasons of various kinds. These reserves are subject to multiple event tests. Table 9 shows the results obtained by choosing the first date (AG - 15) as the event date. Note: Based on the data in Table 9. The points joined by a solid line represent the cumulative average abnormal returns (CMARt). Graph 7: Announcement of “work limitation” reservations -7 -6 -5 -4 -3 -2 -1 0 -6 -4 -2 0 2 4 6 8 10 12 Cumulative excess Informational Performance of Audit Reports Content: Case of French Companies Listed on the Stock Exchange during the Decade 2010-2020 15 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals