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

The reading of the results shows that the average abnormal returns are negative and significant around the date of the event when we consider the impact on stock market prices of the reservation issued for a reason "limitation of work" by the auditor. This profitability (-1.16%) is significantly different from zero at the 5% threshold on date t +1 one day after the event date (GA -15). It should be noted that the reason for “limitation of work” is considered a relatively severe type of reservation. For this reason, the average abnormal returns are often negative and significant after the announcement of this type of reserve. iii. The informative content of the reservation “disagreement on accounting rules and principles” The auditor, having carried out the due diligence he deemed necessary, noted an accounting irregularity that management refuses to correct. This disagreement is significant enough to have an impact on the certification. Table 10: Announcement of “disagreement on accounting principles” reservations Date Excess return T-test Cumulative excess T-test on cumulative -5 0,08 0,21 -2,41 -1,14 -4 -0,05 -0,01 -2,41 -1,12 -3 0,12 0,31 -2,28 -1,04 -2 -0,43 -1,05 -2,72 -1,22 -1 -0,83 -2,02 -3,55 -1,57 0 0,31 0,75 -3,24 -1,41 1 -0,75 -1,83 -3,99 -1,71 2 0,02 0,05 -3,97 -1,69 3 -0,13 -0,31 -4,10 -1,70 4 0,12 0,29 -3,98 -1,63 5 -1,26 -3,06 -5,25 -2,12 6 0,01 0,01 -5,24 -2,10 7 0,03 0,09 -5,21 -2,08 8 -0,81 -1,98 6,02 -2,33 9 -0,32 -0,78 -6,34 -2,43 10 -0,48 -1,17 -6,83 -2,58 Note: Returns are expressed in percentages. The supposed announcement date is set 15 days before the GA date. Abnormal returns are defined with reference to the market model = + + ). The examination of the reports of the statutory auditors during the period 2010-2020 makes it possible to identify 40 reservations of reason “disagreement on the rules and accounting principles.” These reserves are subject to various event tests (Table 10). The following results relate to the average abnormal returns around the second event date (date of the signature of the report by the auditor). Note: According to the data in Table 10. The triangles joined by a solid line represent the cumulative average abnormal returns (CMARt) Graph 8: Announcement of “disagreement on accounting principles” reservations -3 -2.5 -2 -1.5 -1 -0.5 0 -6 -4 -2 0 2 4 6 8 10 12 Cumulative T-test Informational Performance of Audit Reports Content: Case of French Companies Listed on the Stock Exchange during the Decade 2010-2020 16 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals