Is Communication Between the Auditor and Audit Committee Associated With Stock Price Crash Risk?

IF 2.1 4区管理学 Q2 BUSINESS, FINANCE

International Journal of Auditing Pub Date : 2025-02-25 DOI:10.1111/ijau.12372

Eun Hye Jo, Jung Wha (Jenny) Lee, Tom Scott

引用次数: 0

Abstract

Despite an emphasis on the value of communication from the auditor to the audit committee in auditing standards and by regulators, it is unclear if it is effective at revealing bad news to the audit committee. Using the unique Korean setting, where communication must be disclosed, we examine if it is associated with future firm-specific stock price crash risk. We find that greater communication is significantly negatively associated with stock price crash risk and that the results are driven by written communication and communication on key audit matters or internal controls. Furthermore, the value of communication is stronger coming from Big 4 auditors and when the audit committee is independent.

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审计师与审计委员会之间的沟通是否与股价崩盘风险有关？

尽管审计准则和监管机构都强调审计师与审计委员会沟通的价值，但目前尚不清楚这种沟通在向审计委员会披露坏消息方面是否有效。利用韩国独特的环境，通信必须披露，我们研究它是否与未来公司特定的股价崩溃风险有关。我们发现，更多的沟通与股价崩盘风险显著负相关，并且结果是由书面沟通和关键审计事项或内部控制的沟通驱动的。此外，来自四大会计师事务所以及审计委员会独立时，沟通的价值更强。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Auditing BUSINESS, FINANCE-

CiteScore

3.70

自引率

15.00%

发文量

期刊介绍： In addition to communicating the results of original auditing research, the International Journal of Auditing also aims to advance knowledge in auditing by publishing critiques, thought leadership papers and literature reviews on specific aspects of auditing. The journal seeks to publish articles that have international appeal either due to the topic transcending national frontiers or due to the clear potential for readers to apply the results or ideas in their local environments. While articles must be methodologically and theoretically sound, any research orientation is acceptable. This means that papers may have an analytical and statistical, behavioural, economic and financial (including agency), sociological, critical, or historical basis. The editors consider articles for publication which fit into one or more of the following subject categories: • Financial statement audits • Public sector/governmental auditing • Internal auditing • Audit education and methods of teaching auditing (including case studies) • Audit aspects of corporate governance, including audit committees • Audit quality • Audit fees and related issues • Environmental, social and sustainability audits • Audit related ethical issues • Audit regulation • Independence issues • Legal liability and other legal issues • Auditing history • New and emerging audit and assurance issues