Factors Associated with the Early Adoption of the SEC's Revised Auditor Fee Disclosure Rules

2006 ◽  
Vol 25 (2) ◽  
pp. 41-51 ◽  
Author(s):  
Sharad Asthana ◽  
Jayanthi Krishnan
Keyword(s):  
Audit Fees ◽  
Auditor Independence ◽  
Securities And Exchange Commission ◽  
Factors Associated ◽  
Disclosure Requirements ◽  
Early Adoption ◽  
Disclosure Rules ◽  
Definition Of ◽  
Auditor Fees ◽  
Considerable Concern

Corporate disclosures of auditor fees (beginning in February 2001) caused considerable concern among regulators and investors about auditor independence because they revealed that nonaudit fees were a substantial proportion of total auditor fees. However, in 2003 the Securities and Exchange Commission (SEC) introduced revised disclosure requirements, specifying a broader definition of audit fees, and additional fee categories (SEC 2003). About 31 percent of our sample firms adopted the new rules in advance of the required date. We investigate the pattern of early adoption of the new fee disclosure rules by companies. Our results indicate that companies with greater nonaudit fee ratios during the prior year, companies that could show a greater decline in nonaudit fee ratios due to reclassification under SEC (2003), and companies that had greater audit-related fees after the reclassification were likely to adopt the new rules early. We conjecture that companies that had the most to gain from reclassifying fees—possibly by reducing negative investor perceptions about nonaudit services—adopted the new rules earlier than required.

Original and Revised Auditor Fee Data

2011 ◽  
Vol 5 (1) ◽  
pp. A54-A69 ◽  
Author(s):  
Rebecca L. Rosner ◽  
Ariel Markelevich
Keyword(s):  
Audit Committee ◽  
Audit Fees ◽  
Securities And Exchange Commission ◽  
Accounting Firms ◽  
Reporting Requirements ◽  
Disclosure Requirements ◽  
Big 4 ◽  
Audit Fee ◽  
Nonaudit Services ◽  
Auditor Fees

SUMMARY: A significant number of companies report revised auditor fees (audit, nonaudit services, and total) in subsequent Securities and Exchange Commission (SEC) filings. We find that, on average, revised audit fees and total fees are significantly higher, and nonaudit services (NAS) fees are significantly lower than the originally reported fees. The occurrence of fee revisions decreases significantly after 2006 and does not appear to be concentrated in specific industries. In addition, we find that larger clients are more likely to report fee revisions, while clients of Big 4 auditors and clients that file late are less likely to report fee revisions. We also examine the magnitude of upward and downward fee revisions. The fee revisions likely result from the changes in the SEC's fee disclosure reporting requirements from 2001 to 2003, as well as ambiguity related to the new requirements. In addition, they also may stem from estimated billing by accounting firms prior to filing with the SEC, followed by more precise billing after the filing. Our objective is to alert managers and practitioners to the subtleties of the fee disclosure requirements relative to fees billed/paid, the disparity in fee reporting, and the necessity for reporting revised fees if appropriate. We advise audit committee members, analysts, researchers, and other users of audit fee data to use revised fee numbers and exercise caution when using originally reported fees, as they often are revised.

Going-Concern Audit Opinions and the Provision of Nonaudit Services: Implications for Auditor Independence of Bankrupt Firms

2009 ◽  
Vol 28 (1) ◽  
pp. 153-169 ◽  
Author(s):  
Joseph Callaghan ◽  
Mohinder Parkash ◽  
Rajeev Singhal
Keyword(s):  
Negative Relationship ◽  
Audit Fees ◽  
Managerial Incentives ◽  
Auditor Independence ◽  
Empirical Question ◽  
Going Concern ◽  
Nonaudit Services ◽  
Auditor Fees ◽  
The Relationship ◽  
The U.S

SUMMARY: Researchers in the area of auditor independence have examined the relationship between auditors' opinions and auditor-provided services. While DeFond et al. (2002) and Geiger and Rama (2003) fail to find auditor impairment for distressed U.S. companies, Sharma (2001) and Sharma and Sidhu (2001) find a negative relationship between the likelihood of a going-concern (GC) opinion and nonaudit fees paid to auditors for bankrupt Australian companies. These conflicting results may arise from jurisdictional differences between Australia and the U.S. or differential managerial incentives and firm costs between distressed and bankrupt firms. In light of these differences, an empirical question exists as to whether the results of the Australian studies will obtain in the U.S. We examine the relationship between the propensity of auditors to render GC opinions and nonaudit fees (and other auditor fees) for a sample of bankrupt U.S. firms. We do not observe any association between GC opinions and nonaudit fees, audit fees, total fees, or the ratio of nonaudit fees to total fees.

Auditor Fees and Auditor Independence—Evidence from Going Concern Reporting Decisions in Germany

2013 ◽  
Vol 32 (4) ◽  
pp. 129-168 ◽  
Author(s):  
Nicole V. S. Ratzinger-Sakel
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Auditor Independence ◽  
Litigation Risk ◽  
Manufacturing Companies ◽  
Anglo Saxon ◽  
Going Concern ◽  
Big 4 ◽  
Reporting Decisions ◽  
Auditor Fees

SUMMARY This study examines the potential for non-audit services to impair auditor independence using going concern modifications as a proxy for audit quality. While prior research has focused primarily on Anglo-Saxon environments, this study focuses on Germany because of the country's unique reporting attributes and lower litigation risk when compared to Anglo-Saxon settings. Based on a sample of financially stressed manufacturing companies during the period 2005–2009, the results do not suggest that German auditors are less independent when the level of non-audit fees is high. However, there is some evidence that Big 4 audit firms are less likely than their non-Big 4 counterparts to issue a going concern emphasis-of-matter paragraph for engagements characterized by both relatively high levels of non-audit fees and financial stress.

scholarly journals Auditor Fees and Going-Concern Reporting Decisions on Bankrupt Companies: Additional Evidence

2015 ◽  
Vol 9 (1) ◽  
pp. A13-A27 ◽  
Author(s):  
William J. Read
Keyword(s):  
Audit Fees ◽  
Auditor Independence ◽  
Data Availability ◽  
Audit Failure ◽  
The Public ◽  
Going Concern ◽  
Audit Firms ◽  
Public Company ◽  
Reporting Decisions ◽  
Auditor Fees

SUMMARY The recent growth in non-audit services (NAS) at the major audit firms has the attention of auditing regulators. On several occasions recently, board members of the Public Company Accounting Oversight Board (PCAOB) have indicated that the rise in NAS may place auditor independence at risk (Harris 2014; Tysiac 2014). Impaired independence can result in audit failure, which includes situations when auditors fail to issue going-concern (GC) audit opinions to soon-to-be bankrupt companies. In this paper, I examine the association between the propensity of auditors to issue GC opinions and NAS fees (and audit fees) to 203 bankrupt companies during 2002–2013. In analysis, I find no significant relation between GC decisions and NAS fees and audit fees. My results may interest U.S. regulators, who recently expressed concerns about the threat to auditor independence from the spike in NAS at the major firms. Data Availability: Publicly available from sources identified in the paper.

scholarly journals Intra-dialytic hypotension following the transition from continuous to intermittent renal replacement therapy

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
William Beaubien-Souligny ◽  
Yifan Yang ◽  
Karen E. A. Burns ◽  
Jan O. Friedrich ◽  
Alejandro Meraz-Muñoz ◽  
...  
Keyword(s):  
Renal Replacement Therapy ◽  
Hospital Mortality ◽  
Replacement Therapy ◽  
Kidney Injury ◽  
Hemodynamic Instability ◽  
Factors Associated ◽  
Definition Of ◽  
Vasopressor Use ◽  
Cumulative Fluid Balance ◽  
Intermittent Renal Replacement Therapy

Abstract Background Transition from continuous renal replacement therapy (CRRT) to intermittent renal replacement therapy (IRRT) can be associated with intra-dialytic hypotension (IDH) although data to inform the definition of IDH, its incidence and clinical implications, are lacking. We aimed to describe the incidence and factors associated with IDH during the first IRRT session following transition from CRRT and its association with hospital mortality. This was a retrospective single-center cohort study in patients with acute kidney injury for whom at least one CRRT-to-IRRT transition occurred while in intensive care. We assessed associations between multiple candidate definitions of IDH and hospital mortality. We then evaluated the factors associated with IDH. Results We evaluated 231 CRRT-to-IRRT transitions in 213 critically ill patients with AKI. Hospital mortality was 43.7% (n = 93). We defined IDH during the first IRRT session as 1) discontinuation of IRRT for hemodynamic instability; 2) any initiation or increase in vasopressor/inotropic agents or 3) a nadir systolic blood pressure of < 90 mmHg. IDH during the first IRRT session occurred in 50.2% of CRRT-to-IRRT transitions and was independently associated with hospital mortality (adjusted odds ratio [OR]: 2.71; CI 1.51–4.84, p < 0.001). Clinical variables at the time of CRRT discontinuation associated with IDH included vasopressor use, higher cumulative fluid balance, and lower urine output. Conclusions IDH events during CRRT-to-IRRT transition occurred in nearly half of patients and were independently associated with hospital mortality. We identified several characteristics that anticipate the development of IDH following the initiation of IRRT.

THE PROBLEMS OF THE INVESTIGATOR’S FORENSIC THINKING FORMATION

2021 ◽  
pp. 68-73
Author(s):  
Руслан Юрьевич Павлов
Keyword(s):  
Cognitive Abilities ◽  
Educational Process ◽  
Criminal Cases ◽  
Factors Affecting ◽  
Factors Associated ◽  
Personal Qualities ◽  
Definition Of ◽  
The Impact ◽  
Objective Investigation

Актуальность статьи связана с поиском новых способов и методов повышения эффективности борьбы с преступностью, оперативного раскрытия преступлений, а также с набирающим популярность среди криминалистов направлением «криминалистического мышления», овладение навыками которого будет способствовать наиболее полноценному и объективному расследованию уголовных дел. Проблемным в настоящее время является недостаточное качество следствия и необходимость повышения когнитивных способностей следователей (дознавателей). Задачей исследования являлось выявление факторов, влияющих на развитие и формирование криминалистического мышления следователей. Цель работы - провести анализ составных частей процесса становления следователя и особенностей его практической деятельности, влияющих на когнитивные способности с точки зрения криминалистики, путем изучения и сравнения имеющихся материалов по данной тематике. Анализу подвергнуты личностные качества следователя, особенности образовательного процесса и влияние опыта на результаты работы, а также факторы, сопутствующие следственной деятельности (организация труда, уровень стресса, нагрузки и т. д.). Результат проведенного исследования выражен в определении проблемных факторов, влияющих на формирование криминалистического мышления следователя (дознавателя) и возможных путей их преодоления, важности такого мышления, которое остается знанием, постоянно сориентированным в сторону практики. The relevance of the article is related to the search for new ways and methods to improve the effectiveness of the fight against crime, the prompt detection of crimes, as well as the trend of «forensic thinking», which is gaining popularity among criminalists, mastering the skills of which will contribute to the most complete and objective investigation of criminal cases. Problems at present are insufficient quality of investigation and the need to improve the cognitive abilities of investigators (inquirers). The task of the study was to identify factors that influence the development and formation of forensic thinking of investigators. The purpose of the work is- to analyze the components of the process of formation of an investigator and features of his practical activities affecting the cognitive abilities in terms of forensics by studying and comparing existing materials on this topic. The analysis is subjected to the personal qualities of an investigator, the peculiarities of the educational process and the impact of experience on the results of work, as well as factors associated with the investigative activity (organization of work, stress and stress levels, etc.). The result of the study is expressed in the definition of problematic factors affecting the formation of forensic thinking of an investigator (inquirer) and possible ways to overcome them, the importance of such thinking, which remains knowledge, constantly oriented towards practice

scholarly journals Factors Influencing Auditor Independence among Listed Companies in Nigeria: Generalized Method of Moments (GMM) Approach

2017 ◽  
Vol 9 (8) ◽  
pp. 191 ◽  
Author(s):  
Mary Kehinde Salawu
Keyword(s):  
Method Of Moments ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Secondary Data ◽  
Audit Fees ◽  
Listed Companies ◽  
Positive Influence ◽  
Auditor Independence ◽  
Financial Reports ◽  
Factors Influencing

The study examines the factors influencing auditor independence among listed companies in Nigeria. A sample of 65 firms out of the 194 listed on the Nigerian Stock Exchange (NSE) were purposively selected for analysis, these comprise 14 money deposit banks (financial), 1 mortgage bank and 50 non-financial firms. Secondary data were employed for the study and were sourced from the audited financial reports of sampled companies and fact book of the Nigerian Stock Exchange between the periods of 2006 and 2013. Data were analysed using descriptive statistics and Generalised Method of Moments (GMM). Preliminary tests were carried out such as Sargan test, Arellano-Bond Serial Correlation Test among others. The study revealed that Big4, audit tenure, profitability, leverage and inventory with account receivable had negative significant impact, which can impair auditor independence, while size of the firms and loss had positive influence on auditor independence in Nigeria. Also, the square root of the number of subsidiaries was positively related to auditor independence, but not significant and the total number of subsidiaries had positive influence on auditor independence but not significant. These results implied that the two variables can increase the complexity of the audit and, consequently, a rise in audit fees expect in their presence. This will in turn reduce auditor independence. The study therefore recommended that joint audit be adopted and audited tenure be reviewed. The findings of the study would enable management, regulators, investors and other stock market participants to play their unique and important roles in enhancing auditor independence in Nigeria.

Factors associated with failure to correct the international normalised ratio following fresh frozen plasma administration among patients treated for warfarin-related major bleeding

2012 ◽  
Vol 107 (04) ◽  
pp. 662-672 ◽  
Author(s):  
Leigh White ◽  
Mark Friedman ◽  
Christine Nichols ◽  
Jordan Menzin ◽  
Jan Hoesche ◽  
...  
Keyword(s):  
Major Bleeding ◽  
Fresh Frozen Plasma ◽  
Charlson Score ◽  
Factors Associated ◽  
International Normalised Ratio ◽  
Fresh Frozen ◽  
Retrospective Database Analysis ◽  
Definition Of ◽  
Frozen Plasma ◽  
Retrospective Database

SummaryThis study assessed the frequency and factors associated with failure to correct international normalised ratio (INR) in patients administered fresh frozen plasma (FFP) for warfarin-related major bleeding. This retrospective database analysis used electronic health records from an integrated health system. Patients who received FFP between 01/01/2004 and 01/31/2010, and who met the following criteria were selected: major haemorrhage diagnosis the day before to the day after initial FFP administration; INR ≥2 on the day before or the day of FFP and another INR result available; warfarin prescription within 90 days. INR correction (defined as INR ≤1.3) was evaluated at the last available test up to one day following FFP. A total of 414 patients met selection criteria (mean age 75 years, 53% male, mean Charlson score 2.5). Patients presented with gastrointestinal bleeding (58%), intracranial haemorrhage (38%) and other bleed types (4%). The INR of 67% of patients remained uncorrected at the last available test up to one day following receipt of FFP. In logistic regression analysis, the INR of patients who were older, those with a Charlson score of 4 or greater, and those with non-ICH bleeds (odds ratio vs. intracranial bleeding 0.48; 95% confidence interval 0.31–0.76) were more likely to remain uncorrected within one day following FFP administration. In an alternative definition of correction, (INR ≤1.5), 39% of patients’ INRs remained uncorrected. For a substantial proportion of patients, the INRs remain inadequately or uncorrected following FFP administration, with estimates varying depending on the INR threshold used.

scholarly journals Noncompliance with SEC regulations: evidence from timely loan disclosures

2021 ◽  
Author(s):  
Judson Caskey ◽  
Kanyuan Huang ◽  
Daniel Saavedra
Keyword(s):  
Interest Rates ◽  
Stock Prices ◽  
Investor Attention ◽  
Equity Analysts ◽  
Disclosure Rules ◽  
Asset Acquisition ◽  
Definition Of ◽  
Shed Light

AbstractWe use required 8-K filings around major borrowings to shed light on firms’ choices of whether to comply with SEC disclosure rules. Exploiting within-firm variation, we find that firms are more likely to hide loans with high spreads and tight financial covenants. We further find that firms appear to exploit the ambiguity of the definition of materiality, as they are more likely to selectively disclose (hide) “immaterial” loans when interest rates are low (high). Firms are less likely to hide loans when investors anticipate borrowing during asset acquisition, when firms are followed by more equity analysts or receive more investor attention, and when the firms’ stock prices are more volatile. Lastly, we provide evidence that the SEC does not rigorously enforce compliance with 8-K loan disclosures.

Sign in / Sign up

Export Citation Format

Share Document