Advances in Accounting最新文献_第10页

Audit quality effects of the PCAOB's 2006 tax service restrictions PCAOB 2006年税务服务限制对审计质量的影响

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100562

Matthew Notbohm, Adrian Valencia

{"title":"Audit quality effects of the PCAOB's 2006 tax service restrictions","authors":"Matthew Notbohm, Adrian Valencia","doi":"10.1016/j.adiac.2021.100562","DOIUrl":"10.1016/j.adiac.2021.100562","url":null,"abstract":"<div><p>In 2004 and 2005, use of aggressive tax services provided by a company's auditor had become so broadly concerning that it was the focus of a PCAOB roundtable and discussed in a Congressional subcommittee investigation report (PCAOB, 2004 and US Senate, 2005). Although auditor provision of these and other nonaudit services to issuer audit clients was restricted in 2006, research on the effectiveness of these restrictions finds that they did not impact audit quality (Notbohm, Paterson and Valencia, 2015 and Lennox, 2016). We reexamine this issue with a focus on the audit quality effects for the engagements most impacted by the restrictions-Big 4 audit clients with pre-restriction tax service fees of at least $100,000 that fell by at least 75% following the restrictions. Using a difference-in-difference framework and two proxies for audit quality, we find evidence of the effectiveness of the PCAOB's 2006 restrictions among those clients. Additionally, we find these results are sensitive to the level of pre-restriction tax service fees, with the restatement (going concern) effect of the restrictions strengthening (weakening) in the pre-restriction tax service fee level. We also find that the effects of these restrictions are concentrated among clients of Big 4 auditors rather than clients of the 2nd tier or 3rd tier auditors. Results of additional analyses indicate that audit quality, as measured by the probability of restatement, was lower in the pre-restriction period for purchasers than for non-purchasers. Our results are robust to a barrage of sensitivity tests. Our findings contribute to the continued regulator discussion about the proper level and types of allowable tax nonaudit services.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.adiac.2021.100562","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46831296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1

Real earnings management and the properties of analysts' forecasts 实际盈余管理与分析师预测的性质

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100566

Lisa A. Eiler , Joshua J. Filzen , Mark Jackson , Isho Tama-Sweet

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引用次数: 3

Do auditors react to real earnings management? 审计师对真实盈余管理有反应吗?

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100565

Angel Arturo Pacheco-Paredes , Clark M. Wheatley

引用次数: 7

Is assurance on risk management systems relevant for bankers’ decisions? 风险管理系统的保证是否与银行家的决策相关?

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100564

Reiner Quick, Kevin Gauch

引用次数: 0

Military directors, governance and firm behavior 军事主管，治理和坚定的行为

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100563

Chen Cai , Iftekhar Hasan , Yinjie Shen , Shuai Wang

引用次数: 5

The relation between non-GAAP earnings and accounting restatements: Evidence after regulation G 非公认会计原则收益与会计重述之间的关系：规则G之后的证据

IF 1.6

Advances in Accounting Pub Date : 2021-12-01 DOI: 10.1016/j.adiac.2021.100567

Shin-Rong Shiah-Hou

引用次数: 0

He wouldn't, but I would: The effects of pronoun-induced language vividness in whistleblowing policies 他不会，但我会:代词诱导的语言生动性对检举政策的影响

IF 1.6

Advances in Accounting Pub Date : 2021-09-01 DOI: 10.1016/j.adiac.2021.100545

Alisa G. Brink , C. Kevin Eller , Lei Gao

{"title":"He wouldn't, but I would: The effects of pronoun-induced language vividness in whistleblowing policies","authors":"Alisa G. Brink , C. Kevin Eller , Lei Gao","doi":"10.1016/j.adiac.2021.100545","DOIUrl":"10.1016/j.adiac.2021.100545","url":null,"abstract":"<div><p>In this study, we conducted two experiments to test whether varying the types of pronouns used in a company's internal whistleblowing policy influences employees' reporting intentions. We focus on two fundamental types of whistleblowing policy content: Reporting Responsibility (i.e., information about how to report through whistleblowing channels) and Anti-retaliation (i.e., information about retaliation protections). Within these types of content, we examine the effect of pronoun congruency, which occurs when vivid pronouns are used in a manner that emphasizes the intended theme of the message. First, we conducted a 2 × 2 experiment where policy content type (Reporting Responsibility or Anti-retaliation) and pronoun type (first-person or third-person) were manipulated between participants. The results indicate a significant interaction where more vivid first-person pronouns are more effective than third-person pronouns in improving employees' reporting intentions when they only receive Reporting Responsibility policy content. However, third-person pronouns are more effective than first-person pronouns when participants only receive Anti-retaliation content. In our second experiment, participants viewed both types of content simultaneously in a 2 × 2 between-participants experiment where pronoun congruency was manipulated. Results indicate that pronoun congruency within Reporting Responsibility content significantly affects reporting intentions, such that congruent first-person pronouns are more effective in increasing reporting intentions than incongruent third-person pronouns. The subsequent manipulation of pronoun congruency in Anti-retaliation policy content has no significant incremental effect on reporting intentions. Implications are discussed in the paper.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.adiac.2021.100545","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44485316","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 4

Toward an understanding of year-over-year changes in municipal management discussion and analysis disclosures 旨在了解市政管理讨论和分析披露的年度变化

IF 1.6

Advances in Accounting Pub Date : 2021-09-01 DOI: 10.1016/j.adiac.2021.100548

Kevin T. Rich , Brent L. Roberts , Joseph M. Wall , Jean X. Zhang

{"title":"Toward an understanding of year-over-year changes in municipal management discussion and analysis disclosures","authors":"Kevin T. Rich , Brent L. Roberts , Joseph M. Wall , Jean X. Zhang","doi":"10.1016/j.adiac.2021.100548","DOIUrl":"https://doi.org/10.1016/j.adiac.2021.100548","url":null,"abstract":"<div><h3>Synopsis</h3><p>Using a unique setting in which the standard setter (the Governmental Accounting Standards Board) provides guidance on the content of Management Discussion and Analysis (MD&A) disclosures, we investigate the determinants of content changes in municipal government MD&A. We do so in terms of economic changes, turnover, and regulatory characteristics. We use a sample of 1142 municipal MD&A disclosures from fiscal year 2011 to 2015 to calculate a difference score based on the degree to which municipal MD&As change from the previous year. Our empirical analysis highlights that MD&A content changes vary directly with changes in the unemployment rate, fund balance from governmental funds, and auditor turnover. Furthermore, we find evidence that MD&A content changes might be more likely in states without formal GAAP mandates, possibly implying that municipal managers increase transparency by complementing reported financial information with additional qualitative commentary in narrative disclosures when states do not centralize fiscal control over municipalities. Overall, our analysis provides insight on the use of qualitative disclosure by municipal managers, and highlights a need for enhanced commentary on certain items (such as debt and capital expenditures) in order to create greater credibility with and accountability to citizens and other financial statement users. This research is especially timely as GASB re-examines the disclosure mandates of GASB 34.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.adiac.2021.100548","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"137255456","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Income smoothing and audit fees 收入平滑和审计费用

IF 1.6

Advances in Accounting Pub Date : 2021-09-01 DOI: 10.1016/j.adiac.2021.100547

Hsihui Chang , L.C. Jennifer Ho , Zenghui Liu , Bo Ouyang

{"title":"Income smoothing and audit fees","authors":"Hsihui Chang , L.C. Jennifer Ho , Zenghui Liu , Bo Ouyang","doi":"10.1016/j.adiac.2021.100547","DOIUrl":"10.1016/j.adiac.2021.100547","url":null,"abstract":"<div><p>In this study, we examine the effect of income smoothing on auditors' pricing decisions. Analyzing a sample of 12,823 firm-year observations from U.S. companies in non-regulated industries<span> for the period 2000–2018, we find that income smoothing is negatively associated with audit fees<span>, suggesting that auditors favorably view smoothed earnings. This result holds when we control for other variables that have been identified as determinants of audit fees in prior literature, including client-specific (e.g., client size, audit complexity, litigation risk, and corporate governance), auditor-specific (e.g., auditor quality, auditor tenure, and auditor expertise), and engagement-specific (e.g., audit opinion, busy season, reporting lag) factors. Our results also hold across (1) alternative smoothing measures (with and without considering the use of accruals to smooth earnings), (2) different sources of income smoothness (innate vs. discretionary components) and (3) various robustness tests. Overall, our evidence supports the notion that auditors perceive income smoothing as signaling rather than opportunistic behavior, and thus charge lower audit fees. To our knowledge, this is the first study that examines income smoothing directly from the perspective of auditors.</span></span></p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.adiac.2021.100547","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46011309","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 9

The foreign corrupt practices act: How investors respond when violation severity and corresponding penalty (mis)match 海外腐败行为:投资者在违规程度与相应处罚(不当)相匹配时的反应

IF 1.6

Advances in Accounting Pub Date : 2021-09-01 DOI: 10.1016/j.adiac.2021.100546

Wioleta Olczak

{"title":"The foreign corrupt practices act: How investors respond when violation severity and corresponding penalty (mis)match","authors":"Wioleta Olczak","doi":"10.1016/j.adiac.2021.100546","DOIUrl":"10.1016/j.adiac.2021.100546","url":null,"abstract":"<div><p>The Foreign Corrupt Practices Act (FCPA) has become a major focus for corporations, the Securities and Exchange Commission (SEC), and the Department of Justice (DOJ), as indicated by the dramatic increase in the number of FCPA enforcement actions and the level of civil and criminal penalties. Prior regulatory practice shows that the SEC and the DOJ struggle not only to evaluate the severity of a company's FCPA violation, but also to establish the penalty amount. Given the difficulty in assessing penalties, the severity of a company's FCPA violation at times appears mismatched with the size of the penalty. Leveraging signaling theory, this study predicts and finds that when a company's FCPA violation severity and the size of the penalty imposed are mismatched, investors experience ambiguity in assessing the company's future prospects and, in effect, are more likely to give the company the benefit of the doubt. In this case, investors' company risk assessments are dampened, and they show a higher willingness to maintain their investment in the company. However, when the severity of the company's FCPA violation and the penalty amount match, investors are less likely to experience ambiguity, which leads to higher company risk assessments and a lower willingness to maintain their investment in the company. In addition, the combination of a more severe FCPA violation and high penalty amount results in the highest risk assessment and lowest willingness to maintain the investment. These results provide ethical and practical considerations that regulatory bodies should weigh in evaluating sanctions.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.adiac.2021.100546","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48377143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 2