Download or read book Financial Reporting Timeliness and Industry Specialist Auditor written by Hamidah binti Mohamed and published by . This book was released on 2015 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to examine the association between the presence of industry specialist auditors and financial reporting timeliness under full convergence with Malaysian Financial Reporting Standards (MFRS). It is argued that the incorporation of International Financial Reporting Standards (IFRS) into MFRS will lengthen the audit report lag (ARL). However, the presence of industry specialist auditors, who are believed to be experts in a particular industry, is able to reduce the ARL and consequently enhance financial reporting timeliness. Hence, this study, investigates the relationship between the presence of industry specialist auditors and financial reporting timeliness under full convergence with MFRS. In this study, ARL which refers to the lag between financial year end to audit report date, is used as a proxy for financial reporting timeliness. This study extracts the data from the 2012 annual reports of Malaysian public listed companies. First, population of 796 companies is selected to determine the industry specialist auditor based on audit market share in each of 13 sectors. Then, out of 796 companies, only 342 are found to fully comply with MFRS in the first year of implementation based on a consideration of the transitioning entities that were given an extension to comply with MFRS beginning on or after 2014. The findings suggest that ARL has a significant negative relationship with the presence of an industry specialist auditor. This suggests that ARL will become shorter when a company utilizes industry specialist auditors to undertake auditing work under full MFRS convergence and that, this should improve financial reporting timeliness. This study contributes to the literature in two ways: First, it focuses on the first year of full MFRS implementation. Second, it focuses on the effects on companies in an emerging economy, Malaysia, of progressively improving accounting standards to fully comply with MFRS after a transition period of 2014.

Download or read book Office Level Characteristics of the Big 4 and Audit Report Timeliness written by James Whitworth and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Timeliness of annual financial reporting information has long been a concern of investors, regulators, financial reporters, and auditors. Recent changes in the audit and financial reporting environment have resulted in longer audit report lags and have increased the importance of identifying factors associated with a timely audit. In this study, we examine the audit timeliness implications of office-specific attributes of the audit firm. Specifically, we examine whether office-specific industry expertise, office size, and the importance of the client to the local office are associated with audit delay (i.e., the time between fiscal year end and the audit report date). In additional analyses we further explore the sensitivity of audit delay to office-specific industry expertise and examine whether the aforementioned audit firm attributes are associated with a propensity to issue an early earnings announcement (which we define as an announcement ten days or more before the audit report date). We find that office-specific industry expertise is negatively associated with audit delay while office size and client importance are both positively associated with audit delay. Office-specific expertise is also positively associated with the propensity to announce earnings substantially early. Finally, we find that office-specific industry expertise garnered via a product specialist strategy (i.e., a small number of large clients within a particular industry) is positively associated with audit delay relative to a low cost specialist strategy (i.e., a large number of smaller clients within the industry). Our study provides further support for the importance of office-specific characteristics on audit and financial reporting outcomes and, more specifically, provides evidence of the benefit of office-specific industry expertise. This research should be of interest to financial reporters, audit firms, and regulators interested in increasing the timeliness/relevance of financial reporting information.

Download or read book Do Industry Specialist Auditors Enhance Financial Reporting Quality written by Jose G. Vega (III) and published by . This book was released on 2014 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether industry specialist auditors add quality to their clients' audited financial statements under the principles-based International Financial Reporting Standards (IFRS) when compared to non-specialists. It is likely that auditor experience and knowledge plays a more important role in evaluating the overall quality when principles-based IFRS standards are in effect. This study examines the effect of adopting a principles-based standard on the accounting quality of both industry specialist and non-specialist clients and whether joint EU and country industry specialist auditors add additional value relative to auditors that are deemed either EU or country industry specialists only. I also examine if the gap between local gap and IFRS affects accounting quality. The results suggest that the mandatory adoption of IFRS positively affected accounting quality among firms in the European Union countries. This positive effect is equal to between 7 to 9 percent of pre-tax earnings of non-specialist clients. The results show that Country industry specialist clients still provides high accounting quality relative to non-specialists clients in post-adoption period. The gap difference in accounting quality between the country industry specials and non-specialist is decreased from the pre-and post-adoption period. However, the EU industry specialist clients experience a positive effect with the adoption of IFRS. The results suggest that countries with different level of GAAP difference experience different effect on accounting quality with the mandatory adoption of IFRS. While countries with small gap differences benefit from the adoption of IFRS, the EU industry specialist model suggests that countries with large GAAP difference experience the greatest benefit. The results further find that different classification of industry specialist provides different levels of accounting quality. Country only industry specialist clients provide the highest level of accounting quality. EU and country and EU only clients experience positive effects with the mandatory adoption of IFRS and provide similar accounting quality as non-specialist clients. The results of this study are highly relevant, not only in light of the recent waves of IFRS adoption, but also in light of the recent audit reforms in Europe, which include rules that address mandatory audit rotation, dual audits, and market concentration.

Download or read book Reaching Key Financial Reporting Decisions written by Stella Fearnley and published by John Wiley & Sons. This book was released on 2011-08-04 with total page 471 pages. Available in PDF, EPUB and Kindle. Book excerpt: The regulatory framework for financial reporting, auditing and governance has changed radically in recent years, as a result of problems identified from the Enron scandal and more recently from the drive to implement global standards. In a key regulatory change, a company audit committee is now expected to play a significant role in agreeing the contents of the financial statements and overseeing the activities of the auditors. Finance Directors, Audit Committee Chairs and Audit Engagement Partners are required to discuss and negotiate financial reporting and auditing issues, a significant process leading to the agreement of the published numbers and disclosures, and to the issuing of the auditor's report which accompanies them, but which is entirely unobservable by third parties. Reaching Key Financial Reporting Decisions: How Directors and Auditors Interact is a fascinating, behind-the-scenes examination of this closed process. The authors draw on the results of face to face interviews, and an extensive survey of finance directors, audit committee chairs and audit partners, and present nine company case studies highlighting the process of discussion and negotiation and the methods by which the agreed financial reporting outcome was reached. Detailed analysis of the case studies: Allows those involved in the process to benchmark their behaviours against those of others Enables a comparison between the previous and current regulatory environments to see what has changed, and sheds light on the sorts of behaviours the current regulatory framework encourages Evaluates the effectiveness of the changed regulatory regime, providing evidence relevant to current policy debates concerning the value of audit, IFRS and the relative merit of rules-based versus principles-based accounting standards in relation to professional judgement and compliance The unprecedented access and unique insights offered by this book make it invaluable for audit firm staff and partners, audit committee chairs and company directors involved in agreeing the published financial statements, as well as those who have an interest in the financial statements, but do not have access to the negotiation process.

Download or read book Financial Reporting Handbook written by Michael R. Young and published by Aspen Publishers Online. This book was released on 2003 with total page 1824 pages. Available in PDF, EPUB and Kindle. Book excerpt: Never before has a single reference provided such quick access to every critical aspect of financial reporting. In addition to covering the new Sarbanes-Oxley legislation, SEC rules and regulations, and corporate governance standards promulgated by the Independence Standards Board and the AICPA at institutions such as New York Stock Exchange, NASDAQ, and the American Stock Exchange, the Financial Reporting Handbook tackles important underlying themes such as the centrality of the audit committee, the individual responsibility of executives, and the integrity of the outside auditor. Best of all, the Financial Reporting Handbook will be updated every quarter with the relevant laws and regulations that are developed and implemented.

Download or read book The Accountant s Role in Corporate Governance Global Unified Transparency and Disclosure Criteria for Financial Reporting written by Michelle Simbulan and published by GRIN Verlag. This book was released on 2021-11-17 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2021 in the subject Business economics - Investment and Finance, grade: Post graduate, , language: English, abstract: This study investigated the principles and criteria for transparency and disclosure in financial reporting and the accountant’s contribution facilitating its implementation. Corporate governance stands upon several principles, raised from the Cadbury report, Principles of Corporate Governance, and Sarbanes-Oxley Act of 2002. It includes rights and equitable treatment of shareholders, interests of stakeholders, role and responsibilities of the board, integrity and ethical behavior, and disclosure and transparency. Disclosure and transparency are one of the principles of corporate governance that aims to inform the public of the roles and responsibilities of the board and management in order to provide stakeholders with a level of accountability. It also includes the implementation of procedures to independently verify and safeguard the integrity of the company’s financial reporting..

Download or read book Corporate Governance and Financial Reporting written by Niamh Brennan and published by SAGE Publications Limited. This book was released on 2008-03-03 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: This major work, compiled by one of the leading academics in Europe in the area of Corporate Governance, brings together key readings in the field, focusing on those corporate governance mechanisms influencing financial reporting and accountability.

Download or read book Auditor Going Concern Reporting written by Marshall A. Geiger and published by Routledge. This book was released on 2021-06-09 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditor reporting on going-concern-related uncertainties remains one of the most challenging issues faced by external auditors. Business owners, market participants and audit regulators want an early warning of impending business failure. However, companies typically do not welcome audit opinions indicating uncertainty regarding their future viability. Thus, the auditor’s decision to issue a "going concern opinion" (GCO) is a complex and multi-layered one, facing a great deal of tension. Given such a rich context, academic researchers have examined many facets related to an auditor’s decision to issue a GCO. This monograph reviews and synthesizes 182 recent GCO studies that have appeared since the last significant review published in 2013 through the end of 2019. The authors categorize studies into the three broad areas of GCO: (1) determinants, (2) accuracy and (3) consequences. As an integral part of their synthesis, they summarize the details of each study in several user-friendly tables. After discussing and synthesizing the research, they present a discussion of opportunities for future research, including issues created or exacerbated as a result of the global COVID-19 pandemic. This monograph will be of assistance to researchers interested in exploring this area of auditor responsibility. It will also be of interest to auditing firms and individual practitioners wanting to learn what academic research has examined and found regarding this challenging aspect of audit practice. Auditing standard-setters and regulators will find it of interest as the authors review numerous studies examining issues related to audit policy and regulation, and their effects on GCO decisions. The examination of GCO research is extremely timely given the financial and business disruption caused by the worldwide COVID-19 pandemic. This unprecedented global event has caused companies, auditors and professional bodies to revisit and reassess their approach to going concern, and to think even more deeply about this fundamental business imperative.

Download or read book A Hidden Risk of Auditor Industry Specialization written by Cory A. Cassell and published by . This book was released on 2019 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a measure of office-level industry concentration/specialization (as opposed to a market-based measure), we identify situations in which auditor industry specialization could be detrimental for audit outcomes. In stable environments, industry specialist auditors should be able to apply their unique experience and knowledge in ways that yield better audit outcomes. However, during periods of heightened industry-specific risk, specialist auditors from the affected industry could struggle to secure and allocate sufficient resources to mitigate the heightened risk in the affected industry because, by construction, specialists in the affected industry have a client portfolio that is concentrated in the affected industry (i.e., there is insufficient resource slack). We test our predictions by investigating the effects of the recent financial crisis on audits of clients from the banking industry. We find that, during the period before the financial crisis, banking auditor industry specialization is associated with higher audit quality and more timely audits. However, during the financial crisis, the results indicate that banking auditor industry specialization is associated with lower audit quality and less timely audits. Collectively, our results suggest that auditor office-level industry specialization can be detrimental in certain circumstances and that audit firms and audit regulators should consider whether the audit market, audit firms, or audit offices have become too specialized to handle the resource allocation problems that crisis situations present.

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 State of the Art Theories and Empirical Evidence written by Roshima Said and published by Springer. This book was released on 2017-12-06 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses several important issues related to corporate governance reporting, corporate social responsibility (CSR), fraud and bankruptcy. It gathers papers presented at the 6th International Conference on Governance, Fraud, Ethics and Social Responsibility, which was held in Penang, Malaysia on 18–19 November 2015. The content is divided into three major sub-themes: Corporate Governance and Accountability; Corporate Social Responsibility (CSR) and Sustainable Development; and Ethics, Risk and Fraud. The first sub-theme addresses recently identified issues, such as corporate governance reporting, corporate governance regulation differences between countries, governance and financial market economics, financial market supervision, and control and risk management. In turn, the second sub-theme focuses on international auditing standards, green/socially responsible investment, environmental and social accounting and auditing, CSR-related matters, legislation and CSR reporting differences for public listed companies, accounting for sustainable development performance, and sustainability assessment models. The third sub-theme puts the spotlight on financial assessment and diagnosis, modeling, hedging, fraud, bankruptcy, accounting and auditing ethics and ethical problems in financial markets. Taken together, the issues discussed here provide state of art theories and empirical evidence approached from broad perspectives, making the book a valuable resource for researchers, students and practitioners alike.

Download or read book How Foreign Participation and Market Concentration Impact Bank Spreads written by Ashoka Mody and published by World Bank Publications. This book was released on 2004 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. Martinez Peria and Mody analyze the impact of these factors on Latin American bank spreads during the late 1990s. Their results suggest that foreign banks were able to charge lower spreads relative to domestic banks. This was more so for de novo foreign banks than for those that entered through acquisitions. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related to both higher spreads and costs. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to understand banking sector market structure changes in developing countries.

Download or read book Audit Reports and Stock Markets written by Kim Ittonen and published by University of Vaasa. This book was released on 2009 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tiivistelmä: Tilintarkastuskertomukset ja osakemarkkinat.

Download or read book Corporate Financial Reporting written by Andrew Higson and published by SAGE. This book was released on 2003-02-28 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Internet bubble has collapsed and the largest bankruptcy in US history, Enron, has made the call for greater transparency in financial reporting more important than ever. Andrew Higson draws attention to what is a 'true and fair view' in reporting and critically examines accounting theory and modern practice.

Download or read book Report to the Financial Accounting Standards Board written by FASB Task Force on Timely Financial Reporting Guidance and published by . This book was released on 1983 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Routledge Companion to Auditing written by David Hay and published by Routledge. This book was released on 2014-09-15 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditing has been a subject of some controversy, and there have been repeated attempts at reforming its practice globally. This comprehensive companion surveys the state of the discipline, including emerging and cutting-edge trends. It covers the most important and controversial issues, including auditing ethics, auditor independence, social and environmental accounting as well as the future of the field. This handbook is vital reading for legislators, regulators, professionals, commentators, students and researchers involved with auditing and accounting. The collection will also prove an ideal starting place for researchers from other fields looking to break into this vital subject.

Download or read book Internal Audit Reports Post Sarbanes Oxley written by Susan M. Switzer and published by John Wiley & Sons. This book was released on 2007-01-06 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Brimming with commonsense advice delivered in a conversational, easy-to-read style, Internal Audit Reports Post Sarbanes-Oxley: A Guide to Process-Driven Reporting helps you transform raw data into useable information and then translate that information into actionable messages while complying with the SOX Act.