The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2021-05-01 DOI:10.2478/bsrj-2021-0007

Ivica Filipović, T. Susak, Andrea Lijić

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引用次数: 0

Abstract

Abstract Background: Since external auditors possess the expertise necessary for detecting manipulations in financial statements, they should also take into account earnings management that could lead to it. In that context, auditor’s independence, which can be affected by auditor’s rotation, is of utmost importance. Objectives: This paper aims to examine the moderating effect of auditor rotation on the relationship between the extent of financial manipulation and the type of auditor’s opinion for companies listed on the Zagreb Stock Exchange in the Republic of Croatia. Methods/Approach: A panel analysis with logistic regression is conducted to test the research hypothesis. The sample consists of 210 observations during the three years from 2015 to 2017. Results: Results show a significant positive relationship between auditor rotation in a current financial year and auditor’s opinion. Furthermore, there is a negative, but the statistically insignificant moderating effect of auditor rotation in a current financial year on the relationship between financial manipulation and auditor’s opinion, as well as the statistically insignificant moderating effect of auditor rotation frequency over five years on the relationship between financial manipulation and auditor’s opinion. Conclusions: It is not likely that auditors take earnings management into account when generating their opinion on financial statements, and auditor rotation is not proven to be an adequate stimulus in that context.

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审计轮转对财务操纵与审计意见关系的影响

摘要背景:由于外部审计师拥有必要的专业知识来检测财务报表中的操纵，他们也应该考虑到盈余管理可能导致它。在这种情况下，审计师的独立性至关重要，因为审计师的轮岗会影响到审计师的独立性。目的:本文旨在研究审计师轮转对克罗地亚共和国萨格勒布证券交易所上市公司财务操纵程度与审计师意见类型之间关系的调节作用。方法/方法:采用logistic回归的面板分析对研究假设进行检验。样本包括2015年至2017年三年间的210次观测结果。结果:结果显示，当前财政年度审计师轮岗与审计师意见之间存在显著的正相关关系。此外，当年度审计师轮岗对财务操纵与审计意见关系的调节作用为负，但在统计上不显著;五年以上审计师轮岗频率对财务操纵与审计意见关系的调节作用在统计上不显著。结论:审计师在对财务报表发表意见时不太可能考虑盈余管理，审计师轮转也未被证明在这种情况下是一种充分的刺激。

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.