Download or read book The Auditor s Report and Investor Behavior written by Ralph W. Estes and published by Free Press. This book was released on 1982 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditor s Reporting and Investor Behaviour written by Iraê Maria Guilherme Kaiser and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Over time, businesses have become more complex and financial reporting has progressed. As a result, the uncertainty, judgements and estimations that underpin financial statements have also increased. Thus, to reduce the information risk, one of investor's main approaches is to rely on audited financial statements. The auditor's report presents an opinion on the financial statements, which presents to the investor an opinion on the financial statements. However, the auditor's report has up until now been a standard pass/fail report, without more detailed information on how the audit procedures where conducted, or companies specific risk. Investors and other users of financial statements have demanded greater transparency and insight into auditing, because auditors are professionals who conduct their work behind the scenes. As a response, the International Auditing and Assurance Standards Board (IAASB) introduced changes to the auditor's report. This thesis investigates the usefulness of the information delivered to investors and whether there is a reduction in information asymmetry. A quantitative research approach in addition to panel data regressions analysed a sample of 252 listed companies in the Brazilian stock market, for the years 2015 and 2016. The results showed that a reduction in information asymmetry occurred after the implementation of the new disclosure regime. Future studies could examine the audit report impact closely to others factors, and also an qualitative research might give better inside from the investors perspective.
Download or read book Do Critical Audit Matter Disclosures Impact Investor Behavior written by Qian Huang and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Public Company Accounting Oversight Board (PCAOB) has recently required auditors to disclose critical audit matters (CAMs), which are financial statement matters that involve especially challenging, subjective, or complex auditor judgments. The PCAOB contends that CAMs will increase the decision usefulness of the auditor's report and indirectly benefit investors by increasing audit and financial reporting quality. I examine whether investors react to CAM disclosures and whether they perceive any change in adopting firms' financial reporting quality. Using a difference-in-differences design, I find that (1) while there is no significant stock price reaction to CAMs on average, investors react negatively to CAMs disclosed by firms with high levels of short interest; (2) there is a significant increase in the quarterly earnings response coefficient for adopting firms. The effect is driven by big-N audit firms, and increases with the number of CAMs reported. Collectively, the evidence suggests that investors use CAMs to confirm their pre-existing opinions about a firm, and that they perceive an improvement in audit quality and financial reporting reliability due to the CAM disclosure requirement.
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 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 Investor Sentiment Misstatements and Auditor Behavior written by Keval Amin and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with this notion, we document that auditors charge lower fees and report GCOs less conservatively when sentiment is high. However, this reduction in reporting conservatism is unwarranted; results reveal that auditors are less likely to issue GCOs to clients which subsequently file for bankruptcy during high sentiment periods. We conduct additional tests to examine whether auditors' litigation costs indeed vary with sentiment and document that auditors are less likely to be sued and the market reacts less negatively to misstatement announcements when sentiment is high. Collectively, our findings suggest that, although misstatement risk is increasing with sentiment, auditors' litigation risk actually declines.
Download or read book Corporate Governance written by Vasant Raval and published by CRC Press. This book was released on 2020-03-27 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book facilitates a systematic comprehension of internal workings of corporate governance in practice. Facets of this multidisciplinary, constantly evolving field are discussed and interrelationships among them are explained to provide insights on how certain precepts come into play for various roles in governance. This book pragmatically explains and illustrates with a view to integrate. To keep the scope achievable, the emphasis is placed on the U.S.-based companies; where possible, differences in governance around the world are identified. Three rich sources of knowledge help shape the message of this book: existing paradigms, personal experience in governance, and research on issues and challenges of governance. Features: Permits a holistic view of the complex corporate governance landscape. Discusses and generously illustrates the practice of corporate governance. Aids understanding of issues and challenges of corporate governance. Identifies ways to advance the value of one’s role in corporate governance. Teaches how to avoid crucial mistakes that compromise the value of one’s contribution in the governance process. If you are a professional accountant, securities lawyer, economist, financial analyst, auditor, executive, entrepreneur, or an investor, you will find the book helpful in understanding the entire landscape of governance fairly quickly. Those already involved in the governance arena may find the book refreshing, and may use it to coach others. This book can serve as a reference book in any offering of a course at any academic level.
Download or read book Unethical Behavior of Auditors written by Fotini Mastroianni and published by GRIN Verlag. This book was released on 2017-04-27 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2015 in the subject Business economics - Revision, Auditing, , language: English, abstract: The object of the current study are the challenges that auditors face and the falsification of financial reports something that occurs quite often recently. The term “falsification of financial reports” refer to the intentional change of financial data aiming at the over-evaluation of asset, sales and profits or undervaluation of expenses and damages so as to achieve the desired result. Therefore, they manage to alter the image of financial reports. By using a representative sample of 32 companies whose stocks are negotiated at the Stock Exchange, it is sought to comprehend the phenomenon of falsification and naturally, by using the right literature. The aspects of falsifying financial statements as well as its consequences are many and can be economic, social, political, moral, but also legal. The role of the auditor and its behavior are crucial since there is the necessity of having moral quality which will be based on the controlling services of high quality internal control which consists the final result of the study.
Download or read book Quality Financial Reporting written by Paul B. W. Miller and published by McGraw Hill Professional. This book was released on 2002 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text presents the concepts, principles and strategies of reporting financial and accounting information. It takes a practical approach to understanding financial reporting, why it is important and how to create and analyze financial reports so that the value of the company is clearly reported.
Download or read book Financial Statement Fraud Defined written by Zabihollah Rezaee and published by John Wiley & Sons. This book was released on 2011-03-21 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Financial Statement Fraud: Prevention and Detection, Second Edition is a valuable reference guide for fraud examiners, audit committees, management, and regulators; and for one other important cog in this wheel: the investors who stand to lose everything." —Joseph Wells, founder and Chairman, Association of Certified Fraud Examiners Exceptionally well researched and fully revised, Financial Statement Fraud, Second Edition provides thorough coverage of the nature and extent of financial reporting fraud. Authors and accounting experts Zabihollah Rezaee and Richard Riley describe the most successful methods for preventing, detecting, and controlling incidents of financial reporting fraud and offer reliable guidance from standard-setting organizations such as the PCAOB, AICPA, and the SEC. Real-life case studies of companies guilty of such fraud—and a discussion of the consequences—help illustrate important concepts. Thoroughly updated for today's marketplace, Financial Statement Fraud, Second Edition contains sample reports, examples, and documents that promote a realistic understanding of financial statement fraud and the investigation of fraudulent financial reporting allegations centered on the elements of fraud: the act, the concealment, and the conversion or benefit to the perpetrator. Whether you are a manager, board of director, executive, or auditor, the Second Edition updates you on all the important issues regarding financial statement fraud, including: Auditing standards issued by the PCAOB, technological advances, and globalization SOX- and SEC-related implementation rules The movement toward IFRS and IAAS and the use of the XBRL reporting platform The trend toward reducing the complexity of the financial reporting process Corporate governance reforms in the post-SOX era Antifraud policies, practices, and education for all players in the financial reporting process With practical tools and techniques for carrying out antifraud responsibilities, Financial Statement Fraud, Second Edition is the only resource you will need to identify early warning signs of financial misconduct and a reliable, practical guide to preventing it.
Download or read book How Does the Audit Report s Structure Affect Nonprofessional Investors Attention to Its Content written by Brian Matthew- Goodson and published by . This book was released on 2015 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study experimentally examines whether and how two potential changes to the audit report's structure affect the extent to which nonprofessional investors attend to the report's content when evaluating a potential investment, and whether the potential effects differ across levels of investor sophistication. Specifically, I examine the impact of descriptive paragraph headings and the relative location of the opinion paragraph on judgments of financial statement reliability and investment decisions. Results indicate that when the audit report includes descriptive paragraph headings, less sophisticated investors perceive the report to be more readable, which, in turn, leads them to attribute higher levels of reliability to the financial statements and increases their likelihood to invest. I also find that perceptions of processing ease are more important to less sophisticated investors than the degree to which the audit report's actual content is processed. More sophisticated investors appear to be insulated from this heuristic bias. In a second experiment, I examine whether the audit report's structure affects investors' ability to identify departures from the standard unqualified opinion. Specifically, when the audit opinion is adverse, the relative location of the opinion paragraph moderates the effect of headings across levels of investor sophistication. Overall, the results of this study suggest that the audit report's structure significantly influences the extent to which nonprofessional investors' attend to the report's content, and that the audit report's content informs judgments of financial statement reliability and investment decisions..
Download or read book Are Expanded Audit Reports Informative to Investors Evidence from the U K written by Clive S. Lennox and published by . This book was released on 2019 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an effort to make audit reports more informative to investors, the U.K. recently passed a new audit reporting standard that requires auditors to disclose the risks of material misstatement (RMMs) that had the greatest effect on the financial statement audit. Using short-window market reactions to measure investors' responses to the RMMs, our results indicate that investors do not find these disclosures incrementally informative. However, using long-window tests, our results indicate that the RMM disclosures reliably capture the uncertainty in accounting measurements. In additional analysis, we find the RMM disclosures lack incremental information content because most of the risks had already been disclosed by management in the prior earnings announcement, conference call, or the previous year's annual report. Thus, investors were already informed about a majority of the risks before the risks were disclosed by auditors in the expanded audit reports.
Download or read book Private investors behavioral response to financial forecasts and related auditor s reports written by Salvatore Thomas Anthony Cianciolo and published by . This book was released on 1978 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fair Value Measurements written by International Accounting Standards Board and published by . This book was released on 2006 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Reactions to a High Quality Auditor and Managerial Preference for Audit Quality written by Patrick J. Hurley and published by . This book was released on 2019 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We insert an automated high-quality (HQ) auditor into established experimental audit markets to test the impact on the supply and demand for audit quality. Our approach allows us to investigate manager demand for audit quality and how other auditors respond to the increased competition from the HQ auditor. Theory predicts that managers will demand high levels of audit quality to avoid investors' price-protecting behavior, resulting in the HQ auditor dominating the audit market. This demand for high-quality auditing should increase other auditors' provision of high-quality audits to compete with the high-quality competitor. However, we find strong evidence that the HQ auditor does not dominate the audit market - despite holding audit costs constant and investors placing a premium on HQ auditor reports. We also find that adding an HQ auditor results in other auditors lowering audit quality. Our additional analyses indicate that some managers demand lower audit quality in an attempt to avoid negative audit reports. This evidence is consistent with loss aversion as a potential explanation for this behavior. Our findings indicate a need for additional theoretical and empirical investigation to develop a more comprehensive theory of the demand for auditing.
Download or read book An Investigation of the Effects of Alternative Auditors Reports on Investment Behavior in the Presence of Litigation Uncertainties written by Alan Stuart Glazer and published by . This book was released on 1978 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Securities Exchange Act of 1934 Release written by United States. Securities and Exchange Commission and published by . This book was released on 1962 with total page 868 pages. Available in PDF, EPUB and Kindle. Book excerpt:
