English Version
学院简介 历史沿革 机构设置 现任领导 院长寄语 历任领导 咨询委员会
学科工作 学科采风 科研工作 科研项目 博士后科研流动站
本科教学 专业学位 研究生教学 高端培训 继续教育
招生信息 专业介绍 招聘信息 职业规划 毕业生信息 毕业生去向(Placement of Graduates) EFMD国际人才网
国际交流 合作项目 国际认证 办事指南
学工在线 研究生学工
党建巡礼 学院简报 学习参考 管理制度 教工之家
校友名录 杰出校友 历史名人 MBA联合会 EMBA校友会

主题:Allocation of Effort in Integrated Audits and Its Impact on Financial Reporting Quality






论文摘要:China’s 2012 Rule mandates that listed firms should disclose their internal control (IC) audit fees in the annual reports. Using abnormal audit fees to proxy for over- or under-investment in audit effort, China's new rule provides a natural experiment in which we can distinguish auditor's effort allocation in an integrated audit. This study examines whether IC over-reliance exists and whether this over-reliance leads to lower quality of financial reporting. An IC over-reliance exists if auditors' extra effort in IC audits cannot actually detect IC weaknesses (ICW). Because the auditors mistakenly believe over-invest in IC audits can help detect more ICW, they will under-estimate firms' control risk, resulting in reduced substantive testing and lower financial reporting quality. Based on a sample of 4,411 firm-year observations from the A-share companies listed on China’s stock exchanges during 2012-2016, we show that IC over-reliance exists and harms financial reporting quality when auditors charge positive abnormal IC audit fees and negative abnormal financial statement audit fees. These results are robust to controlling for endogeneity, alternative measures of financial reporting quality, and group-wise comparisons among different effort allocation combinations. However, this negative effect of IC over-reliance on financial reporting quality is mitigated when the auditors are industry experts. Our empirical results bear important implications to recent regulations and standards.


发布时间:2017-11-07 10:43:50 浏览人数:
查询服务:2018普通本科生转专业成绩查询 | 本科教务系统 | 研究生教务系统 | 科研管理系统 | E科之家 | 工资查询 | 校历查询 | 电话查询 | 交通查询 | 网站管理
相关链接:《经济评论》 | 《珞珈管理评论》 | 《珞珈MBA》 | 《武汉大学EMBA》 | 康腾实践中心