Investigating recent audit reform in the Australian context: An analysis of the KAM disclosures in audit reports 2017–2018

Timeliness of audit reports is a qualitative feature that enhances the usefulness of audited financial statements. As an emerging country, Tunisia has modernized its accounting legislation to enhance the quality of financial reporting. This legislation encourages independent auditors to optimize the transmission delays of audit reports. The authorities assume that the satisfaction of stakeholders is secured by regulating disclosure of audit reports. Our research analyses the date of issue of Tunisian audit reports and timeliness of audit information for shareholders and all users of financial statements (stakeholders). This paper provides new empirical evidence about the timeliness of audit reports in Tunisia. It holds two dates that influence the needs of users of financial statements: the date of signature of the auditors and the date of publication of the audit reports in the financial bulletin. The same article discusses the variability of the timeliness of audit reports and the factors that explain the delay information.

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Does Auditor Explanatory Language in Unqualified Audit Reports Indicate Increased Financial Misstatement Risk?

The Accounting Review ◽

10.2308/accr-50836 ◽

2014 ◽

Vol 89 (6) ◽

pp. 2115-2149 ◽

Cited By ~ 54

Author(s):

Keith Czerney ◽

Jaime J. Schmidt ◽

Anne M. Thompson

Keyword(s):

Financial Reporting ◽

Reporting Quality ◽

Positive Association ◽

Financial Statements ◽

Financial Statement ◽

Financial Reporting Quality ◽

Accounting Principles ◽

Client Relationship ◽

Financial Misstatement ◽

Audit Reports

ABSTRACT According to auditing standards, explanatory language added at the auditor's discretion to unqualified audit reports should not indicate increased financial misstatement risk. However, an auditor is unlikely to add language that would strain the auditor-client relationship absent concerns about the client's financial statements. Using a sample of 30,825 financial statements issued with unqualified audit opinions during 2000–2009, we find that financial statements with audit reports containing explanatory language are significantly more likely to be subsequently restated than financial statements without such language. We find that this positive association is driven by language that references the division of responsibility for performance of the audit, adoption of new accounting principles, and previous restatements. In addition, we find that (1) “emphasis of matter” language that discusses mergers, related-party transactions, and management's use of estimates predicts restatements related to these matters, and that (2) the financial statement accounts noted in the explanatory language typically correspond to the accounts subsequently restated. In sum, our results suggest that present-day audit reports communicate some information about financial reporting quality.

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How a Shared Auditor Affects Firm-Pair Comparability: Implications of Both Firm and Individual Audit Styles

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-17-008 ◽

2020 ◽

Vol 39 (3) ◽

pp. 133-160

Author(s):

Lili Jiu ◽

Bin Liu ◽

Yuanyuan Liu

Keyword(s):

Accounting Standards ◽

Financial Statement ◽

Professional Judgment ◽

Audit Process ◽

Personal Style ◽

Audit Firm ◽

Market Participants ◽

Audit Firms ◽

Audit Reports ◽

Practical Implications

SUMMARY In this study, we examine the roles of audit firms and individual auditors in improving financial statement comparability. We conduct the study in the Chinese setting, in which the identities of signing auditors are revealed in audit reports and accounting standards are principle based. After controlling for audit firm style, we find that firm pairs with shared signing auditors have incrementally greater comparability. Our results indicate that individual auditors exhibit their own personal style in implementing accounting standards and exercising professional judgment in the audit process. Overall, our study underscores the association between individual auditors and comparability, with practical implications for market participants and policymakers.

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Market Reactions to a High-Quality Auditor and Managerial Preference for Audit Quality

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-52478 ◽

2019 ◽

Vol 38 (4) ◽

pp. 131-149 ◽

Cited By ~ 1

Author(s):

Patrick J. Hurley ◽

Brian W. Mayhew

Keyword(s):

Loss Aversion ◽

Audit Quality ◽

Data Availability ◽

Quality Competition ◽

High Quality ◽

Market Reactions ◽

Comprehensive Theory ◽

Audit Reports ◽

The Impact ◽

Quality Theory

SUMMARY We insert an automated high-quality (HQ) auditor into established experimental audit markets to test the impact of high-quality competition on other auditors' supply of and managers' demand for audit quality. Theory predicts that managers will demand high levels of audit quality to avoid investors' price-protecting behavior. This demand should result in the HQ auditor dominating the market and increase other auditors' audit quality provision to compete with the HQ auditor. However, we find that the HQ auditor does not dominate the 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. Additional analyses indicate some managers demand lower audit quality to avoid negative audit reports, consistent with loss aversion as a potential explanation. Our findings indicate a need to develop a more comprehensive theory of the demand for auditing. Data Availability: The laboratory market data used in this study are available from the authors upon request.

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Rapid Evaporative Ionization Mass Spectrometry: A Review on Its Application to the Red Meat Industry with an Australian Context

Metabolites ◽

10.3390/metabo11030171 ◽

2021 ◽

Vol 11 (3) ◽

pp. 171

Author(s):

Robert S. Barlow ◽

Adam G. Fitzgerald ◽

Joanne M. Hughes ◽

Kate E. McMillan ◽

Sean C. Moore ◽

...

Keyword(s):

Mass Spectrometry ◽

Supply Chain ◽

Ex Vivo ◽

Meat Products ◽

Red Meat ◽

Ionization Mass ◽

Meat Industry ◽

Quality And Safety ◽

Australian Context ◽

Processing Plants

The red meat supply chain is a complex network transferring product from producers to consumers in a safe and secure way. There can be times when fragmentation can arise within the supply chain, which could be exploited. This risk needs reduction so that meat products enter the market with the desired attributes. Rapid Evaporative Ionisation Mass Spectrometry (REIMS) is a novel ambient mass spectrometry technique originally developed for rapid and accurate classification of biological tissue which is now being considered for use in a range of additional applications. It has subsequently shown promise for a range of food provenance, quality and safety applications with its ability to conduct ex vivo and in situ analysis. These are regarded as critical characteristics for technologies which can enable real-time decision making in meat processing plants and more broadly throughout the sector. This review presents an overview of the REIMS technology, and its application to the areas of provenance, quality and safety to the red meat industry, particularly in an Australian context.

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A problem-solving approach to criminalised women in the Australian context

Alternative Law Journal ◽

10.1177/1037969x20985104 ◽

2021 ◽

pp. 1037969X2098510

Author(s):

Megan Beatrice

Keyword(s):

Criminal Justice ◽

Problem Solving ◽

Procedural Justice ◽

Criminal Justice System ◽

Justice System ◽

Therapeutic Jurisprudence ◽

Upward Trend ◽

Complex Needs ◽

Australian Context

The upward trend of incarceration rates persists among women in Victoria, with increasingly punitive sentencing and onerous new bail laws. At the same time, the complex needs of women in the criminal justice system are becoming the focus of greater study and documentation. This article presents the case for a specialist women’s list under the Magistrates’ Court of Victoria jurisdiction, based in principles of therapeutic jurisprudence and procedural justice. While the list aims to reduce offending by addressing criminogenic factors unique to women, the picture is far bigger; the Victorian Women’s Court ultimately promotes justice for women who commit crimes.

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Yarning as protected space: relational accountability in research

AlterNative An International Journal of Indigenous Peoples ◽

10.1177/1177180120986151 ◽

2021 ◽

pp. 117718012098615

Author(s):

Stuart Barlo ◽

William (Bill) Edgar Boyd ◽

Margaret Hughes ◽

Shawn Wilson ◽

Alessandro Pelizzon

Keyword(s):

Research Methodology ◽

Personal Experience ◽

Indigenous Research ◽

Indigenous Australian ◽

Australian Context ◽

Data History ◽

Research Relationships ◽

Relational Accountability ◽

Relational Process ◽

The Way

In this article, we open up Yarning as a fundamentally relational methodology. We discuss key relationships involved in Indigenous research, including with participants, Country, Ancestors, data, history, and Knowledge. We argue that the principles and protocols associated with the deepest layers of yarning in an Indigenous Australian context create a protected space which supports the researcher to develop and maintain accountability in each of these research relationships. Protection and relational accountability in turn contribute to research which is trustworthy and has integrity. Woven throughout the article are excerpts of a yarn in which the first author reflects on his personal experience of this research methodology. We hope this device serves to demonstrate the way yarning as a relational process of communication helps to bring out deeper reflection and analysis and invoke accountability in all of our research relationships.

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