Download or read book Public Accounting Firms written by Jeanette M. Franzel and published by DIANE Publishing. This book was released on 2004-03 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following major failures in corp. financial reporting, the Sarbanes-Oxley Act of 2002 was enacted to protect investors through requirements intended to improve the accuracy and reliability of corp. disclosures and to restore investor confidence. The act strengthened auditor independence and improved audit quality. Mandatory audit firm rotation (setting a limit on the period of years a public accounting (PA) firm may audit a particular company's financial statements) was considered as a reform to enhance auditor independence and audit quality during the hearings that preceded the act, but it was not included in the act. This report studies the potential effects of requiring rotation of the PA firms that audit public companies registered with the SEC.
Download or read book Mandatory audit firm rotation study study questionaires responses and summary of respondents comments written by United States. General Accounting Office and published by DIANE Publishing. This book was released on 2004 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mandatory Audit Firm Rotation Study written by United States. General Accounting Office and published by . This book was released on 2004 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Gao 04 217 Mandatory Audit Firm Rotation Study written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2018-02-03 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: GAO-04-217 Mandatory Audit Firm Rotation Study: Study Questionnaires, Responses, and Summary of Respondents' Comments
Download or read book Mandatory Audit Firm Rotation Study written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-10-21 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mandatory Audit Firm Rotation Study: Study Questionnaires, Responses, and Summary of Respondents' Comments
Download or read book Mandatory Audit Firm Rotation Study written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mandatory Audit Firm Rotation Study written by United States. General Accounting Office and published by . This book was released on 2004 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Public Accounting Firms written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-10-20 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public Accounting Firms: Required Study on the Potential Effects of Mandatory Audit Firm Rotation
Download or read book Public Accounting Firms written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Audit Firm Rotation Rule written by Mara Cameran and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Union's response to recent financial reporting scandals on both sides of the Atlantic reached a crucial stage recently when the European Parliament voted to accept the new 8th Company Law Directive. It takes the minimum harmonisation route to set the basic standards that Member States need to enforce to protect audit quality whilst allowing them the freedom to add specific national requirements where they see fit. One practical example stems from the position reached on the topics of the mandatory rotation of audit firms. The 8th Directive suggests the rotation of individual audit partners, albeit one that leaves Member States the freedom to decide whether to enforce mandatory firm rotation at the national level (Amendment 101 - 26 Sep. 05). In this paper the evidence on mandatory audit firm rotation from around the world are examined in order to offer a global perspective on this regulatory hot topic. Our research supports the idea that benefits of mandatory audit firm rotation are largely unproven. First of all this study reviews the conclusions and findings of 26 reports by regulators or other representative bodies from around the world. Of the 26 reports, 22 conclude against the benefits of mandatory audit firm rotation and while 4 are in favour. The study also looked at 33 academic studies (9 opinion based and 24 based on empirical evidence). The majority did not support mandatory audit firm rotation.
Download or read book Mandatory Audit Firm Rotation and Audit Quality written by Andrew B. Jackson and published by . This book was released on 2010 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the effect a regime of mandatory audit firm rotation would have on audit quality in an Australian setting. Using two measures of audit quality, being the propensity to issue a going-concern report and the level of discretionary accruals, the study examines the switching patterns of clients in their current voluntary switching capacity, and the levels of audit quality. We find that audit quality increases with audit firm tenure, when proxied by the propensity to issue a going concern opinion, and is unaffected when proxied by the level of discretionary accruals. We conclude that given the additional costs associated with switching auditors there are minimal, if any, benefits of mandatory audit firm rotation. Other initiatives to address concerns about auditor independence and audit quality therefore need be considered before imposing mandatory audit firm rotation.
Download or read book Public Accounting Firms written by United States. General Accounting Office and published by . This book was released on 2003 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 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 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 Public accounting firms required study on the potential effects of mandatory audit firm rotation written by and published by DIANE Publishing. This book was released on with total page 98 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 504 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.
