Download or read book Does the Timing of Auditor Changes Affect Audit Quality Evidence from the Initial Year of the Audit Engagement written by Cory A. Cassell and published by . This book was released on 2017 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: We focus on the first year of the auditor-client relationship and investigate whether audit quality varies with the timing of the new auditor's appointment. We find that audit quality is not lower for companies that engage new auditors before the end of the third fiscal quarter than for companies that do not change auditors. However, companies that engage new auditors during or after the fourth fiscal quarter are more likely to misstate their audited financial statements than companies that engage new auditors earlier in the year and companies that do not change auditors. In additional tests, we find that the decrease in audit quality associated with late auditor changes is more pronounced for companies with complex operations (i.e., more operating segments). These results suggest that the extent to which audit quality suffers in the first year of audit engagements is affected by both the amount of time required to understand the client's business, assess risks, and perform the audit (all of which are driven by client complexity), as well as the amount of time available for auditors to perform these tasks.
Download or read book Regulation of Finance and Accounting written by David Procházka and published by Springer Nature. This book was released on 2022-10-27 with total page 462 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edition provides a mix of research perspectives to examine the economic and non-economic outcomes of global developments in financial regulation, monetary and fiscal measures, or sustainable development, with a tailored focus on specifics in emerging and transitioning countries. The volume combines a mix of approaches to investigate relevant newly emerged topics (e.g., economics of emissions, corporate social responsibility reporting) as well as traditional issues requiring new approaches (e.g., exchange rate mechanisms, investment strategies, the impact of corporate reporting on economic fundamentals). Such a comprehensive view of contemporary economic phenomena makes the volume attractive not only to academia, but also to regulators and policymakers, when deliberating on the potential outcomes of competing regulatory mechanisms.
Download or read book Handbook of Services and Artificial Intelligence written by Ada Scupola and published by Edward Elgar Publishing. This book was released on 2024-08-06 with total page 375 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook examines the impacts of AI on the innovation of services, service processes and business models. It presents state-of-the-art conceptual and empirical evidence concerning uses and applications of AI in different service sectors and from varying perspectives.
Download or read book Eurasian Business and Economics Perspectives written by Mehmet Huseyin Bilgin and published by Springer Nature. This book was released on 2022-11-26 with total page 391 pages. Available in PDF, EPUB and Kindle. Book excerpt: EBES conferences have been intellectual hub for academic discussion in economics, finance, and business fields and provide network opportunities for participants to make long lasting academic cooperation. This is the 24th volume of the Eurasian Studies in Business and Economics (EBES’s official proceeding series) which includes selected papers from the 37th EBES Conference – Berlin. The conference was jointly organized with the GLO (Global Labour Organization, a global, independent, non-partisan and non-governmental organization based in Germany) with the support of the Istanbul Economic Research Association and in collaboration with the FOM University of Applied Sciences (Germany). Due to COVID-19, the conference presentation mode was virtual. In the conference, 177 papers by 379 colleagues from 54 countries were presented. Both theoretical and empirical papers in this volume cover diverse areas of business, economics, and finance from many different regions. Therefore, it provides a great opportunity to colleagues, professionals, and students to catch up with the most recent studies in different fields and empirical findings on many countries and regions.
Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.
Download or read book The Effects of Audit Committee Financial Expertise on Auditor Changes and Subsequent Audit Quality written by James D. Whitworth and published by . This book was released on 2010 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation examines the impact of audit committee financial expertise on the circumstances and likelihood of an auditor change. Auditor changes are costly events associated with decreased financial reporting quality. The audit committee is in position to influence the timing and circumstances surrounding these changes through their role overseeing the external financial reporting process. I find that audit committees with greater accounting expertise are associated with fewer auditor changes overall, more auditor dismissals when there is an auditor change, greater industry expertise by the successor auditor, and an increase in financial reporting quality following the auditor change. I find no consistent evidence supporting the impact of supervisory expertise influencing any of the above outcomes.
Download or read book SEC Docket written by United States. Securities and Exchange Commission and published by . This book was released on 2007 with total page 1198 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact of Audit Time Pressure on Audit Quality written by Janaé Monét McClam and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This quantitative research correlational study aimed to determine the effects of time budget pressure on the auditor and whether those effects impact audit quality. The study population consisted of active external auditors registered with a certified public accounting (CPA) license, employed by CPA firms, who hold a minimum of a bachelor's degree in accounting, and have at least one year of accounting experience auditing financial statements. The population consisted of 1,072. The sample size was 283 participants, and the number of respondents was 287. This study contains two dependent variables, auditor judgment and audit quality, and one independent variable, time budget pressure. One indicator measures auditor judgment: premature signoffs. Two indicators measure audit quality: underreporting of audit time and an auditor's ability to detect material misstatements. Two indicators measure time budget pressure: incentives and emphasis from management to complete an audit on budget or under budget and time pressure felt. To conduct the study, surveys were distributed using an online survey platform link. Using IBM SPSS statistical data software, the researcher tested the validity and reliability of the collected data and performed a Spearman Rh0 correlational analysis to determine whether there was a statistically significant relationship between the variables. The study concluded that time budget pressure has a negative effect on auditors and negatively impacts audit quality.
Download or read book Auditing an Integrated Approach written by Alvin A. Arens and published by . This book was released on 1997 with total page 823 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offering coverage of the entire audit process, this text takes the reader through each audit cycle. It then shows how each step relates to the process as a whole. The book is completely oriented to non-complex computerized accounting systems rather than manual ones.
Download or read book The Association between Auditor Changes and Reporting Lags written by Kenneth B. Schwartz and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines audit report lags and earnings announcement lags for a sample of firms that switched auditors. We investigate whether audit report and earnings announcement lags are associated with the timing of auditor changes in relation to firms' fiscal year-ends. It is hypothesized that firms which replace their auditor early (late) in the fiscal year do so for positive (negative) reasons and experience shorter (longer) reporting lags. Conflicts over reporting issues can be difficult to resolve and consequently lead to reporting delays. In other cases, clients may be more concerned about adhering to customary reporting practices or improving reporting timeliness. These are likely to be considerations in auditor realignment decisions and are predictably reflected in the timing of the auditor change. The empirical findings for both audit report and earnings announcement lags are consistent with the hypotheses. Despite the increase in reporting lags for late switchers, we observe a higher incidence of switching in the fourth quarter than in any other quarter. Additionally, we detect a higher percentage of losses and modified opinions for late switchers in the year of the auditor change, which is consistent with the negative circumstances hypothesis. However, we find no evidence of a significant market reaction to announcements of early or late auditor changes. Given the importance of timely reporting, the findings suggest that the timing of an auditor change can convey distinct benefits or costs to switching firms, as measured by its effect on reporting lags. These findings also suggest that additional monitoring of auditor changes occurring around firms' fiscal year-ends can be beneficial because of their potentially negative antecedents and consequences.
Download or read book Mandatory Audit Rotation written by Kathleen Harris and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether mandatory auditor rotation rules are associated with changes in audit quality using available data from three countries that have adopted mandatory auditor rotation (MAR) rules. Consistent with prior literature, I assume that earnings management measures capture the various methods employed by corporate insiders to exercise their discretion to manage earnings that is not constrained by the audit firm. The more discretion, ceteris paribus, in earnings, the lower the audit quality. First, I investigate the debonding effect of an MAR policy. Debonding describes the effect that is often the primary motivation for adopting MAR rules. That is, end the possibility of long-term audit engagements and the economic bond of audit firms to their clients will be broken (by enhancing auditor independence and objectivity). In the sample after adoption of MAR rules, the data show evidence of less earnings management, less managing to earnings targets, and more timely loss recognition compared to the sample before adopting MAR rules. From these results, I conclude that audit markets appear to improve, on average, from enactment of MAR rules. I then investigate the allowed discretion in the year before and the year after auditor changes in which rotation rules have been adopted (termed the low client-specific knowledge effect). I find evidence of lower audit quality in both years. These results highlight the importance, particularly to regulators of audit markets, of considering ways to mitigate the erosion of audit quality when making the transition to new auditors under MAR rules (e.g., the use of detailed handover files between predecessor and successor audit firms or "four-eyes principle" in years of initial audits).
Download or read book Auditing written by Raymond N. Johnson and published by John Wiley & Sons. This book was released on 2019-04-16 with total page 738 pages. Available in PDF, EPUB and Kindle. Book excerpt: The explosion of data analytics in the auditing profession demands a different kind of auditor. Auditing: A Practical Approach with Data Analytics prepares students for the rapidly changing demands of the auditing profession by meeting the data-driven requirements of today's workforce. Because no two audits are alike, this course uses a practical, case-based approach to help students develop professional judgement, think critically about the auditing process, and develop the decision-making skills necessary to perform a real-world audit. To further prepare students for the profession, this course integrates seamless exam review for successful completion of the CPA Exam.
Download or read book The Effect of Mandatory Audit Firm Rotation on Audit Quality with Evidence from China written by Chenyang Dai and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using discretionary accruals as a proxy for audit quality, this paper examines the association between mandatory audit firm rotation and audit quality. The study contributes to the debate on the effect of the mandatory audit firm rotation policy by bringing evidence directly from a setting where such an audit policy is in place. The results of multivariate regressions find no evidence that the adoption of such a policy improves average audit quality in the period thereafter. Other tests focus on the period where the mandatory rotation policy is already in place and examine the potential fluctuation of audit quality in the antecedent and decedent years of a mandatory rotation. The results find no significant difference of the audit quality in the last engagement year of a preceding auditor or in the first engagement year of an incoming auditor. Together with empirical findings in a few other markets where similar audit policies is or was in place, the results of the study argues against the necessity of introducing a mandatory audit firm rotation policy, The study provide implications of relevance for regulators who are considering taking similar measures to improve audit quality.
Download or read book Government Auditing Standards written by Government Accounting Office and published by www.Militarybookshop.CompanyUK. This book was released on 2012 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Newly revised in 2011. Contains the auditing standards promulgated by the Comptroller General of the United States. Known as the Yellow Book. Includes the professional standards and guidance, commonly referred to as generally accepted government auditing standards (GAGAS), which provide a framework for conducting high quality government audits and attestation engagements with competence, integrity, objectivity, and independence. These standards are for use by auditors of government entities and entities that receive government awards and audit organizations performing GAGAS audits and attestation engagements.
Download or read book Do Individual Auditors Affect Audit Quality Evidence from Archival Data written by Ferdinand A. Gul and published by . This book was released on 2015 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. We analyze about 800 individual auditors and find that they exhibit significant variation in audit quality. The effects that individual auditors have on audit quality are both economically and statistically significant, and are pronounced in both large and small audit firms. We also find that the individual auditor effects on audit quality can be partially explained by auditor characteristics, such as educational background, Big N audit firm experience, rank in the audit firm, and political affiliation. Our findings highlight the importance of scrutinizing and understanding audit quality at the individual auditor level.
Download or read book Behavioural Aspects of Auditors Evidence Evaluation written by Magda Abou-Seada and published by Routledge. This book was released on 2017-11-22 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: This title was first published in 2003. Based on psychological research, auditing studies have focused on 'belief revision' as a way of understanding how auditors evaluate evidence. Moreover a belief revision process is consistent with US auditing standards. UK standards on the other hand do not appear to give guidance on the process to follow when evaluating evidence. Research in the US indicates that auditors do in fact follow a belief revision process in accordance with US standards. Employing survey research (based on personal interviews with a number of experienced UK auditors) this book demonstrates how auditors prefer to be described as following the open mind approach. Building on the findings of the interviews the book then describes an experimental study to investigate the differences between the belief revision and open mind approaches in terms of their effect on the efficiency and effectiveness of the audit process. The book concludes that the belief revision approach would improve the efficiency of the audit process without affecting its effectiveness or outcomes.
Download or read book Auditor Tenure and the Timeliness of Misstatement Discovery written by Zvi Singer and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using the timeliness of misstatement discovery as a proxy for audit quality, we examine the association between audit firm tenure and audit quality in a setting that alleviates the endogeneity problem endemic to this line of research. We find that longer audit firm tenure leads to less timely discovery and correction of misstatements, which is consistent with a negative effect of long auditor tenure on audit quality. In addition, using the non-voluntary auditor change following the demise of Arthur Andersen in 2002 as a natural experiment, we show that the misstatements of its former clients were discovered faster than those of comparable companies that retained their auditors throughout the misstatement. This finding speaks to the benefit of a fresh look by a new auditor. An extended analysis shows that longer auditor tenure also leads to misstatements of greater magnitudes, and that the Sarbanes-Oxley Act has mitigated, but not eliminated, the negative effect of long auditor tenure. Lastly, we show that the negative association between auditor tenure and timely discovery of misstatements is mainly present in the first ten years of an audit engagement. Our study has implications for regulators who continue to express concern regarding lengthy auditor-client engagement.
