CEO succession origin, audit report lag, and audit fees: Evidence from Iran

2021 ◽  
pp. 100414
Author(s):  
Javad Oradi
Keyword(s):  
Audit Fees ◽  
Ceo Succession ◽  
Audit Report

Clients' Workplace Environment and Corporate Audits

2017 ◽  
Vol 36 (4) ◽  
pp. 89-113 ◽  
Author(s):  
Minjie Huang ◽  
Adi Masli ◽  
Felix Meschke ◽  
James P. Guthrie
Keyword(s):  
Audit Fees ◽  
Risk Assessments ◽  
Audit Report ◽  
Accounting Firms ◽  
Workplace Environment ◽  
Workplace Satisfaction ◽  
Going Concern ◽  
Corporate Executives ◽  
Workplace Environments ◽  
Jel Classifications

SUMMARY We obtain a novel dataset of workplace satisfaction ratings submitted by about 100,000 employees working for large public U.S. companies. We document that lower workplace ratings are associated with higher audit fees and longer audit report lags. Lower workplace ratings also increase the likelihood of firms receiving modified going concern opinions. Our study shows that organizational workplace environments affect auditor risk assessments and auditing outcomes and provide insights for practicing auditors and corporate executives. Our interviews with practicing auditors at large U.S. accounting firms also provide insights as to how workplace quality affects the corporate audit. JEL Classifications: G3; J28; M14; M42.

scholarly journals The non-audit fee and the auditee’s failure risk

2018 ◽  
Vol 2018 (99 (155)) ◽  
pp. 97-118
Author(s):  
Piotr Staszkiewicz ◽  
Rumiana Górska
Keyword(s):  
New Zealand ◽  
Audit Fees ◽  
Audit Report ◽  
Financial Situation ◽  
The Third ◽  
Cross Border ◽  
Failure Risk ◽  
Audit Fee ◽  
Non Audit Services

This paper examines whether the auditee’s financial situation affects the auditor’s non-audit fee and independ- ence. Three sets of tests were used to address the issue. The first examines whether there are cross-border and intertemporal differences in relationships between non-audit fees and audit fees. The second tests whether there is a relationship between non-audit fees and report modification. The third addresses the relationships between audit fees and the auditee’s financial situation. The results suggest a lack of coexistence of all three motives for the purchase of non-audit fee services, and substantial similarities of auditor and auditee behaviors across Po- land and New Zealand. We documented the lack of a significant link between auditee failure risk and the quality of the audit report. Our findings indicate an operational rather than a strategic nature of non-audit services to incumbent clients.

Auditors' Responses to Classification Shifting: Evidence from U.S. Firms

2021 ◽  
Author(s):  
Mai Dao ◽  
Hongkang Xu ◽  
Trung Pham
Keyword(s):  
Earnings Management ◽  
Audit Fees ◽  
Real Earnings Management ◽  
Audit Report ◽  
Audit Opinion ◽  
Income Statement ◽  
Financial Restatements ◽  
Classification Shifting ◽  
Financial Misstatements

This study examines how auditors react to clients' engagement in classification shifting which refers to the intentional misallocation of line items within the income statement. We find that classification shifting is positively associated with audit fees, audit report lags, the issuance of a modified audit opinion, and auditor resignations. Additional analyses show that auditors' responses to multiple-year classification shifting are similar to our main findings. We further find that classification shifting is associated with a higher likelihood of financial misstatements in the classification shifting year, and future announcements of financial restatements. We also find that the probability of future restatements is even higher when audit clients engage in both classification shifting and real earnings management. Overall, our results imply that auditors become more cautious in response to audit clients' classification shifting behavior.

Auditors’ response to readability of financial statement notes

2020 ◽  
Vol 28 (3) ◽  
pp. 463-480
Author(s):  
Mahdi Salehi ◽  
Mahmoud Lari Dasht Bayaz ◽  
Shaban Mohammadi ◽  
Mohammad Seddigh Adibian ◽  
Seyed Hamed Fahimifard
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Audit Fees ◽  
Financial Statement ◽  
Audit Report ◽  
Financial Reports ◽  
Statistical Population ◽  
Content Type ◽  
Listed Firms ◽  
Going Concern Opinion

PurposeThe main objective of the present study is to assess the potential impact of readability of financial statement notes on the auditor's report lag, audit fees and going concern opinion (GCO).Design/methodology/approachThe statistical population of this study includes all listed firms on the Tehran Stock Exchange (TSE) for the period of 2012–2017. The systematic elimination method is used for sampling and multiple regression and EViews software are used for testing the hypothesis models.FindingsThe obtained results show that there is a significant and positive relationship between audit report lags and readability of financial statements. Moreover, it is also revealed that readability of financial statements is positively associated with audit fees. Furthermore, the findings suggest a negative correlation between readability indexes and issuing GCOs, denoting hard-to-read statements is considered as a risk factor by auditors. Finally, the observations of our robustness tests suggest that the association between audit report lag and readability of financial statements is robust.Originality/valueThis is the first conducted investigation concerning auditor's response to the readability of financial statement notes in TSE. The outcome of current paper may pave the way for revising and developing Iranian accounting standards in order to give a fairer and clearer picture of financial reports.

scholarly journals Audit Research Summaries

2017 ◽  
Vol 91 (7/8) ◽  
pp. 244-249
Author(s):  
Philip Wallage
Keyword(s):  
Audit Fees ◽  
Audit Report ◽  
Big 4 ◽  
Audit Firms ◽  
Audit Fee

Ook deze maand presenteren wij weer enkele “Audit Research Summaries” uit de database van de American Accounting Association (www.auditingresearchsummaries. org). De eerste samenvatting betreft een onderzoek van Sharma, Tanyi en Litt naar de kosten van verplichte audit partner-rotatie in de VS. Hiertoe wordt nagegaan of partner- rotatie gerelateerd is aan de hoogte van de audit fee en het tijdsverloop tussen einde boekjaar en datum afgifte van de controleverklaring (audit report lag). Uit het onderzoek blijkt onder andere dat een positieve en significante associatie bestaat tussen partner-rotatie en audit fees. Ook blijkt dat deze associatie met name bestaat voor grotere klanten en voor de niet-Big 4-audit firms. Een vergelijkbare associatie bestaat voor rotatie en de lengte van de audit report lag. De volgende samenvatting betreft een experiment van Kim en Harding onder Australische en Zuid Koreaanse accountants naar het effect dat gepercipieerde expertise van een leidinggevende heeft op de besluitvorming van een ondergeschikte. Uit het onderzoek blijkt dat de invloed van de vooraf bekende preferentie van de leidinggevende op een te nemen besluit groter is naarmate de leidinggevende meer deskundigheid wordt toegedicht. Er wordt geen verschil geconstateerd tussen Australische en Zuid Koreaanse accountants.

scholarly journals The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

2022 ◽  
Vol 9 (1) ◽  
pp. 89-99
Author(s):  
Nova Kharlinda ◽  
Iskandar Muda ◽  
Keulana Erwin
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Fees ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Factors Affecting ◽  
Analysis Technique ◽  
Audit Fee ◽  
Public Accountant

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

The Timing of Auditor Hiring: Determinants and Consequences

2017 ◽  
Vol 31 (3) ◽  
pp. 85-103 ◽  
Author(s):  
Angel Arturo Pacheco-Paredes ◽  
Dasaratha V. Rama ◽  
Clark M. Wheatley
Keyword(s):  
Significant Role ◽  
Change Process ◽  
Audit Quality ◽  
Audit Fees ◽  
Learning Curves ◽  
Audit Report ◽  
Hiring Process ◽  
Auditor Change

SYNOPSIS Regulators and legislators have long been interested in the auditor change process and in auditors' learning curves. We find that auditor changes closer to the year-end are associated with longer reporting lags and lower audit quality. We find that both audit fees and audit report lags are higher when there is a hiring lag between announcements of the predecessor auditor's dismissal and the hiring of the successor auditor. We also find that the appointment of new executives is associated with the timing of the auditor change, suggesting that client executives have a significant role in the auditor-hiring process.

Shareholder Dissatisfaction and Subsequent Audit Outcomes

2020 ◽  
Vol 34 (4) ◽  
pp. 181-200
Author(s):  
Paul N. Tanyi ◽  
Dasaratha V. Rama ◽  
K. Raghunandan ◽  
Gregory W. Martin
Keyword(s):  
Empirical Evidence ◽  
Audit Quality ◽  
Audit Fees ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Audit Report ◽  
Subsequent Period ◽  
Abnormal Accruals ◽  
Auditor Selection

SYNOPSIS This study examines the association between shareholder dissatisfaction, as proxied using auditor ratification voting, and subsequent auditor effort and audit quality. We document that increases in shareholder dissatisfaction are associated with (1) higher audit fees and longer audit report lags, and (2) lower abnormal accruals and reduced likelihood of financial statement misstatements, in the subsequent period. These findings inform the debate about auditor ratification voting, as governance activists and some regulators argue to increase the role of shareholders in auditor selection despite opposition from some firms and the staff of the Securities and Exchange Commission. We provide empirical evidence that increases in shareholder dissatisfaction with the auditor are associated with increases in subsequent auditor effort and audit quality. This suggests that shareholder action (even nonbinding) may potentially influence subsequent audit outcomes.

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