Client importance and unconditional conservatism in complex accounting estimates

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2022-09-01 DOI:10.1016/j.adiac.2022.100615

Kenneth W. Shaw , James D. Whitworth

引用次数: 1

Abstract

In this paper, we examine the relation between client importance to Big 4 audit firm local offices and unconditional conservatism in complex accounting estimates; specifically, stock option volatility, pension expected asset rates of return, and pension discount rates. Changes in these estimates, which can appear small, can have material financial statement effects, have been used in earnings management schemes, and pose greater audit risk. We find that more important audit clients are associated with the use of more unconditionally conservative accounting estimates. These results are consistent with auditor reputation protection rather than important client economic dependence, and suggest client importance does not impair auditor independence with respect to complex accounting estimates.

Data are available from the public sources cited in the text.

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复杂会计估计中的客户重要性和无条件稳健性

本文研究了客户对四大会计师事务所地方办事处的重要性与复杂会计估计中的无条件稳健性之间的关系;具体来说，股票期权波动率、养老金预期资产收益率和养老金贴现率。这些估计的变动可能看起来很小，但可能对财务报表产生重大影响，已被用于盈余管理方案，并构成更大的审计风险。我们发现，更重要的审计客户与更多无条件保守会计估计的使用相关联。这些结果与审计师的声誉保护而不是重要客户的经济依赖性相一致，并且表明客户的重要性不会损害审计人员在复杂会计估计方面的独立性。数据可从文本中引用的公共来源获得。

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

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.