Managerial Auditing Journal最新文献_第4页

Does mandatory CSR disclosure affect audit efficiency? Evidence from China 强制性企业社会责任披露是否影响审计效率?来自中国的证据

3区管理学

Managerial Auditing Journal Pub Date : 2023-06-01 DOI: 10.1108/maj-09-2022-3681

Yonghai Wang, Jiawei Wang

{"title":"Does mandatory CSR disclosure affect audit efficiency? Evidence from China","authors":"Yonghai Wang, Jiawei Wang","doi":"10.1108/maj-09-2022-3681","DOIUrl":"https://doi.org/10.1108/maj-09-2022-3681","url":null,"abstract":"Purpose This study aims to examine the causal relationship between mandatory CSR disclosure and financial audit efficiency. Design/methodology/approach The authors use the unique institutional setting of China, where a subset of listed firms are mandated to disclose their corporate social responsibility (CSR) reports. The authors use propensity score matching and difference-in-differences approaches to compare audit efficiency in the pre- and post-mandatory CSR disclosure periods between the treatment and control groups. The regression models are estimated with robust standard errors clustered at the firm level. Findings This study finds that following China’s adoption of the mandatory disclosure of CSR, audit report lags decreased by 6% on average, suggesting that audit efficiency improved greatly following mandatory CSR disclosure. Moreover, this association is stronger when firms have better CSR performance, higher CSR report preparation costs, more earnings management before disclosure regulations and better internal controls and when firms belong to high-profile industries and in Big 4 (Big 10) accounting firms. Moreover, neither audit quality nor audit fees decrease when shorter audit lags occur for firms with mandatory CSR disclosures. Overall, the evidence suggests that mandatory CSR disclosure has a positive effect on audit efficiency and that the improvement of audit efficiency does not come as a consequence of reducing audit fees or deteriorating audit quality. Research limitations/implications The results reported in this study have practical and policy implications for policymakers, accounting firms and auditors to pay more attention to CSR information. Originality/value This study provides evidence of the causal relationship between mandatory CSR disclosure regulation and audit efficiency. It enriches the research on audit service production efficiency from the perspective of nonfinancial information disclosure.","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135220501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1

Self-efficacy, remote audit proficiency, effort, and performance in the COVID-19 crisis: an auditor’s perspective COVID-19危机中的自我效能、远程审计熟练程度、努力和绩效:审计师的视角

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-05-19 DOI: 10.1108/maj-05-2022-3570

S. Baatwah, Ali Ali Al-Ansi, Ehsan Saleh Almoataz, Zalailah Salleh

{"title":"Self-efficacy, remote audit proficiency, effort, and performance in the COVID-19 crisis: an auditor’s perspective","authors":"S. Baatwah, Ali Ali Al-Ansi, Ehsan Saleh Almoataz, Zalailah Salleh","doi":"10.1108/maj-05-2022-3570","DOIUrl":"https://doi.org/10.1108/maj-05-2022-3570","url":null,"abstract":"\u0000Purpose\u0000The COVID-19 pandemic has introduced new challenges for auditors to provide high-quality audits. These challenges pose interesting questions about the ability of auditors to obtain audit evidence and ensure appropriate conclusions. In response to these questions, this paper aims to examine how self-efficacy affects the auditors’ effort and performance during COVID-19 and how remote audit proficiency helps them respond to these challenges, as reflected in more effort and high-quality performance.\u0000\u0000\u0000Design/methodology/approach\u0000To test the hypotheses, this study used a quantitative approach in which 193 Saudi auditors were surveyed and partial least squares structural equation modeling was used to analyze the data.\u0000\u0000\u0000Findings\u0000The authors demonstrated that self-efficacy is positively associated with the perceived audit effort and performance during the COVID-19 crisis. The results also showed that remote audit proficiency plays a significant role during COVID-19 as it can help auditors exert more effort and perform audit activities effectively. This study also found that remote audit mediates the association between self-efficacy and both effort and performance during COVID-19. These results are also asserted under several robust analyses.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, these findings provide the first evidence on the effect of COVID-19 on auditors and have implications for both theory and practice.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":"1 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41780735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 2

The objectivity of accounting professionals based in India 印度会计专业人员的客观性

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-05-18 DOI: 10.1108/maj-02-2023-3831

Cristina Bailey, R. Brody, Gaurav Gupta, J. Nash

{"title":"The objectivity of accounting professionals based in India","authors":"Cristina Bailey, R. Brody, Gaurav Gupta, J. Nash","doi":"10.1108/maj-02-2023-3831","DOIUrl":"https://doi.org/10.1108/maj-02-2023-3831","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the objectivity of accounting professionals based in India.\u0000\u0000\u0000Design/methodology/approach\u0000To examine the objectivity of accountants based in India, this study performs an experiment using a well-established instrument from prior literature. The authors asked accounting professionals based in India to act as either the seller or buyer in a hypothetical acquisition scenario. Participants were asked to evaluate the obsolescence of an apparel company’s inventory, assessing both the probability of inventory obsolescence and the likelihood they would propose an inventory write-down.\u0000\u0000\u0000Findings\u0000The results indicate external auditors and tax professionals were able to remain objective, reflected in the consistency of their assessments across the buyer and seller conditions. Internal auditors were less objective, evaluating inventory obsolescence as more likely when their client was considering buying a subsidiary than when their client was considering selling a subsidiary. Internal auditors were also more likely to recommend an inventory write-down adjustment when hired by the buyer than when hired by the seller.\u0000\u0000\u0000Originality/value\u0000This study informs regulators and accounting professionals. Offshoring has “prompt(ed) questions regarding the factors that affect the quality of work in India” (Dickey et al., 2022, p. 680). While the authors do not prescribe specific actions, this study provides evidence on the decision-making process of accounting professionals based in India that regulators might use to craft policy. Furthermore, this study responds to calls for additional evidence on the decision-making process of accounting professionals based in India (Spilker et al., 2016; Mohapatra et al., 2015), and for evidence on the objectivity of internal auditors (Burt and Libby, 2021; Stewart and Subramaniam, 2010).\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47252471","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Office level contagion: impact of a non-timely filing by a major busy season client 办公室层面的传染：繁忙季节主要客户不及时提交文件的影响

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-04-27 DOI: 10.1108/maj-03-2022-3471

Justyna Skomra, R. Sellers, Piotr Antoni Skomra

{"title":"Office level contagion: impact of a non-timely filing by a major busy season client","authors":"Justyna Skomra, R. Sellers, Piotr Antoni Skomra","doi":"10.1108/maj-03-2022-3471","DOIUrl":"https://doi.org/10.1108/maj-03-2022-3471","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the busy season contagion effects on other clients of the Big 4 auditor’s local office associated with the non-timely (NT) filing(s) by large accelerated filer (LAF) client(s) of the office. Specifically, the authors examine the influence such events have on the audit quality and timeliness of other clients of that office.\u0000\u0000\u0000Design/methodology/approach\u0000Using panel data of annual NT filings of LAF clients between 2006 and 2019, the authors apply the ordinary least squares regression technique to model audit reporting lag (ARL) and the logistic regression technique to model the probability of restatements.\u0000\u0000\u0000Findings\u0000Controlling for audit firm, industry and year-fixed effects, the authors find that a LAF NT filing reduces audit quality and audit timeliness of other clients of the office, as measured by restatement risk and ARL. The impact on ARL is most pronounced on the medium and small clients within the office. The deteriorated audit quality is observed for medium clients.\u0000\u0000\u0000Research limitations/implications\u0000The results of this study have practical implications for auditors and regulators. They reveal the contagion effect in the auditor’s local office with the NT LAF client. The main limitation of the study is the lack of staffing utilization data to allow for drawing conclusions on causality.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to document the contagion effect of NT filings of LAF clients conducted at the auditor’s local office level.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45511687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Does explanatory language convey the auditor’s perceived audit risk? A study using a novel big data analysis metric 解释性语言是否传达了审计师感知的审计风险？使用一种新的大数据分析度量的研究

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-04-17 DOI: 10.1108/maj-10-2021-3342

S. Choi, H. Na, Kun Chang Lee

{"title":"Does explanatory language convey the auditor’s perceived audit risk? A study using a novel big data analysis metric","authors":"S. Choi, H. Na, Kun Chang Lee","doi":"10.1108/maj-10-2021-3342","DOIUrl":"https://doi.org/10.1108/maj-10-2021-3342","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the relationship between explanatory language, audit fees and audit hours to demonstrate that auditors use explanatory language in audit reports to explain perceived audit risk.\u0000\u0000\u0000Design/methodology/approach\u0000The authors construct the sentiment value, a novel audit risk proxy derived from audit reports, using big data analysis. The relationship between sentiment value and explanatory language is then investigated. The authors present the validity of their new metric by examining the relationship between sentiment value and accounting quality, taking audit fees and hours into account.\u0000\u0000\u0000Findings\u0000The authors first find that reporting explanatory language is positively related to audit fees. More importantly, the authors provide an evidence that explanatory language in audit reports is indicative of increased audit risk as it is negatively correlated with sentiment value. As a positive (negative) sentimental value means that the audit risk is low (high), the results indicate that auditors describe explanatory language in a negative manner to convey the inherent audit risk and receive higher audit fees from the risky clients. Furthermore, the relationship is strengthened when the explanatory language is more severe, such as reporting the multiple numbers of explanatory language or going-concern opinion. Finally, the sentiment value is correlated with accounting quality, as measured by the absolute value of discretionary accruals.\u0000\u0000\u0000Originality/value\u0000Contrary to previous research, the authors’ findings suggest that auditors disclose audit risks of client firms by including explanatory language in audit reports. In addition, the authors demonstrate that their new metric effectively identifies the audit risk outlined qualitatively in audit report. To the best of the authors’ knowledge, this is the first study that establishes a connection between sentiment analysis and audit-related textual data.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46058896","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1

Auditors’ legal liability and client firms’ comparability: evidence from China 审计师法律责任与客户事务所可比性:来自中国的证据

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-04-14 DOI: 10.1108/maj-05-2022-3566

Yanghui Liu, Jeff Zeyun Chen, W. Chi, Xiaohai Long

{"title":"Auditors’ legal liability and client firms’ comparability: evidence from China","authors":"Yanghui Liu, Jeff Zeyun Chen, W. Chi, Xiaohai Long","doi":"10.1108/maj-05-2022-3566","DOIUrl":"https://doi.org/10.1108/maj-05-2022-3566","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the relation between audit firms’ switch to limited liability partnership (LLP) from limited liability company (LLC) and client firms’ earnings comparability. If LLP auditors, who have a higher liability exposure than LLC auditors, are more consistent in implementing generally accepted accounting principles and executing firm-wide audit methodologies, client firms’ earnings comparability will increase.\u0000\u0000\u0000Design/methodology/approach\u0000Using data from China, the authors examine whether client firm-pairs of LLP auditors have higher earnings comparability than client firm-pairs of LLC auditors. The authors also perform cross-sectional tests to shed light on the mechanisms through which auditors’ litigation exposure affects client firms’ comparability.\u0000\u0000\u0000Findings\u0000The authors find that firm-pairs in which both firms are audited by LLP auditors exhibit higher earnings comparability than other firm-pairs. This result is stronger when client firms are audited by the same auditor, when client firms are audited by the top 10 auditors and when the auditors are less dependent on the client firms. The authors also document that firm-pairs in which both firms are audited by LLP auditors have lower average analyst earnings forecast error and forecast dispersion.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this study is the first to examine the relation between auditor’s litigation exposure and client firms’ earnings comparability. It also extends the literature on audit firm organizational form and audit quality.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42028117","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Governing anti-corruption and perceived auditor independence 治理反腐败和审计师的独立性

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-04-07 DOI: 10.1108/maj-02-2022-3452

Jihad Al‐Okaily

{"title":"Governing anti-corruption and perceived auditor independence","authors":"Jihad Al‐Okaily","doi":"10.1108/maj-02-2022-3452","DOIUrl":"https://doi.org/10.1108/maj-02-2022-3452","url":null,"abstract":"\u0000Purpose\u0000The growing international legal agenda and the fast development of corporate governance rules are now prompting firms to put emphasis on anti-corruption procedures. On the other hand, wide-ranging concerns have been raised by regulators and policymakers regarding the effectiveness of audit committees in promoting ethical behavior and safeguarding auditor independence from the adverse consequences of purchasing non-audit services. The purpose of this paper is to examine the relationship between the adoption of anti-corruption measures and perceived auditor independence in the context of audit committees.\u0000\u0000\u0000Design/methodology/approach\u0000After conducting the Breusch–Pagan Lagrange Multiplier test and the Hausman test, the random-effect model is used as the most appropriate estimator. Several endogeneity tests are also used to account for the endogenous nature of the corporate governance variables in the models.\u0000\u0000\u0000Findings\u0000Using a sample of UK FTSE 350 firms, this paper provides evidence that anti-corruption efforts are associated with lower purchases of non-audit services and lower economic bonding between auditors and their clients. Furthermore, the findings of this paper reveal that the adoption of anti-corruption efforts substitutes the role of audit committees in enhancing perceived auditor independence and that audit committees do not play a significant incremental role.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first study of its kind to focus on bolstering perceived auditor independence while enhancing the control and ethical environment from the clients’ side instead of the auditors’ side.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43831361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

The desire of prestigious audit committee chairs: what are the benefits for financial reporting quality? 知名审计委员会主席的愿望:财务报告质量的好处是什么?

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-03-31 DOI: 10.1108/maj-06-2022-3604

Géraldine Broye, Pauline Johannes

{"title":"The desire of prestigious audit committee chairs: what are the benefits for financial reporting quality?","authors":"Géraldine Broye, Pauline Johannes","doi":"10.1108/maj-06-2022-3604","DOIUrl":"https://doi.org/10.1108/maj-06-2022-3604","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine how the prestige of audit committee (AC) chairpersons influences earnings management.\u0000\u0000\u0000Design/methodology/approach\u0000The sample contains 1,973 firm-year observations of French listed firms for the period 2007–2018. The authors examine the status of AC chairs and CEOs by focusing on the French business elite system. This study tests the association between AC chairs’ (relative) status and the level of earnings management using measures of accrual earnings management and real earnings management (REM).\u0000\u0000\u0000Findings\u0000The results of this study do not show that high-status AC chairs constrain accruals manipulation. However, the results provide evidence that they play a key role in constraining REM. High-status AC chairs are more likely to enhance the monitoring of this type of manipulation, given their thorough knowledge and understanding of the firm’s business environment and practices. This study also finds evidence that AC chairs with a status higher than CEOs are associated with lower levels of REM. The results suggest that prestigious AC chairs influence lower status CEOs’ strategic decisions.\u0000\u0000\u0000Originality/value\u0000This study demonstrates that high-status AC chairs play an important role in detecting and constraining deviations from normal business practices. The results have substantial implications for boards, which will benefit from an understanding of how the appointment of high-status chairs affects financial reporting quality.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48570330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 3

Knowledge sharing via common auditors: evidence from corporate R&D investment 通过共同审计师共享知识：来自企业研发投资的证据

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-03-07 DOI: 10.1108/maj-02-2022-3466

Seunghee Yang, Wonsuk Ha

{"title":"Knowledge sharing via common auditors: evidence from corporate R&D investment","authors":"Seunghee Yang, Wonsuk Ha","doi":"10.1108/maj-02-2022-3466","DOIUrl":"https://doi.org/10.1108/maj-02-2022-3466","url":null,"abstract":"\u0000Purpose\u0000Despite the importance of research and development (R&D), information on its value is not readily available to managers. This study aims to explore the role of common auditors, who audit multiple peer firms in the product market, in clients’ R&D investment decisions. This study highlights common auditors as information intermediaries who affect corporate R&D investment, focusing on the importance of knowledge resources in R&D investment and the limited ability of peers’ public information to communicate the value of R&D.\u0000\u0000\u0000Design/methodology/approach\u0000This study employs pairwise data of firm-peer-year observations to identify a common auditor who provides audit services to the focal firm and its peer firm. This study examines how a firm’s R&D investment changes when the firm’s incumbent auditor provides audit services to peers and analyzes various factors that moderate the effect of common auditors.\u0000\u0000\u0000Findings\u0000Peer firms audited by the same auditor make similar R&D investment decisions. This effect is more pronounced when the auditor specializes more in auditing R&D, when the auditor has a long-term client relationship, and when the firms exhibit a higher level of demand for incremental information relevant to R&D investment. Consistent with the beneficial role of common auditors, firms that are more responsive to auditor-provided information engage more actively in innovation activities in subsequent years.\u0000\u0000\u0000Originality/value\u0000This study deepens the understanding of how networks created by common auditors facilitate information flow among client firms and shape these firms’ R&D investment decisions.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46906237","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

“Tone at the top”: management’s discussion and analysis and audit quality “顶调”：管理层的讨论分析与审计质量

IF 2.9 3区管理学

Managerial Auditing Journal Pub Date : 2023-03-07 DOI: 10.1108/maj-03-2021-3080

Kinsun Tam, Qiao Xu, Guy D. Fernando, R. Schneible

{"title":"“Tone at the top”: management’s discussion and analysis and audit quality","authors":"Kinsun Tam, Qiao Xu, Guy D. Fernando, R. Schneible","doi":"10.1108/maj-03-2021-3080","DOIUrl":"https://doi.org/10.1108/maj-03-2021-3080","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate whether the managers’ emphasis on audit in the management’s discussion and analysis (MD&A) section of the 10-K filing, as part of the firm’s “tone at the top,” is linked to audit quality.\u0000\u0000\u0000Design/methodology/approach\u0000Adopting a computational linguistics approach, the authors measure the manager’s audit emphasis as the frequency of audit-related words in the MD&A. The authors then assess the relationship between audit emphasis and audit quality with ordinary least squares and probit regression models.\u0000\u0000\u0000Findings\u0000This study finds that the manager’s audit emphasis, proxied by the count of audit-related words, is positively associated with audit fees, audit delay, the appointment and retention of Big 4 and industry-specialist auditors, and the probability of switching to Big 4 auditors, while negatively linked to abnormal accruals and the possibility of financial misstatements.\u0000\u0000\u0000Research limitations/implications\u0000The audit emphasis measure suffers from limitations. The computer program determining audit emphasis may misinterpret words in the MD&A. Researchers need to consider procedures to minimize misinterpretations.\u0000\u0000\u0000Practical implications\u0000Frequency of audit words in the MD&A reflects the firm’s aspiration for audit quality. Auditors, regulators and investors could ascertain such aspiration from past and current MD&As.\u0000\u0000\u0000Originality/value\u0000This study associates the manager’s emphasis on audit, measured with computational linguistics from the MD&A, with realized audit quality.\u0000","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42726394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1