In 2016, Taiwan adopted new audit report, aiming to provide more customized and individualized information of audit report. This paper investigates the effects of adopting new audit report on cost of debt of Taiwanese listed and over-the-counter (OTC) companies. The results show that, ceteris paribus, the cost of debt significantly increase after the adopting new audit report. Further, audit report with more estimated matter in key audit matter disclosure is positively associated with cost of debt. Our findings show that the adopting new audit report increases the cost of debt.