Financial Statement Comparability and the Provision of Audit Services

2018-06-12

TopicFinancial Statement Comparability and the Provision of Audit Services

SpeakerLI , LiuchuangXi’an Jiaotong University

Time 9:30-11:00June 21,2018

SiteEMS B247

Abstract

This study examines the impact of financial statement comparability, as captured by the comparability measures developed in De Franco, Kothari, and Verdi (2011), on the provision of audit services. Prior research documents that financial statement comparability is associated with improved user decision making and better governance. We provide evidence that these informational benefits from comparability also extend to the external audit. Specifically, higher levels of comparability improve the quality of the information produced by the firm, lower audit risk levels, and increase external audit efficiency. Consequently, comparability reduces the overall audit fee.

Selected Papers by the Speaker

  1.       Does internal control over financial reporting really alleviate agency conflicts? (with Baolei Qi, Qing Zhou and Jinghui Sun), Accounting and Finance, 2017, 47( 4): 1101-1125,

  2.       Analyst Forecast Accuracy and Media Independence. (with Jeong-Bon Kim and Hao Zhang), Financial Management, 2017, 46: 1023–1051.

  3.       The Contagion Effect of Low-Quality Audits at the Level of Individual Auditors (withBaolei Qi, Gaoliang Tian and Guochang Zhang), The Accounting Review, 2017, 92: 137-164.

  4.       Press freedom, externally-generated transparency, and stock price informativeness: International evidence (with Jeong-Bon Kim, Hao Zhang and Gaoliang Tian), Journal of Banking & Finance, 2014, 46: 299-310.