{"title":"审计师对非增收性错报的回应和预防:来自审计费用和重述的证据","authors":"Jeffrey A. Pittman, Yuping Zhao","doi":"10.2308/AJPT-18-115","DOIUrl":null,"url":null,"abstract":"\n We document that non-income-increasing (NII) misreporting is important to investors and then investigate whether auditors respond to and prevent different types of NII misstatements. We categorize NII misstatements into those whose correction adversely (i.e., unfavorably) affect financial reports and those whose correction positively (i.e., favorably) affect financial reports. We find that audit fees are positively associated with unfavorable NII misstatements, but not with favorable NII misstatements. We examine whether auditors prevent quarterly misstatements from resulting in annual report misstatements and find that auditors are less likely to prevent both favorable and unfavorable NII quarterly report misstatements from resulting in annual report misstatements, with the audit efficacy being lower for favorable NII misstatements. In sum, our research indicates that auditors do attempt to constrain NII misreporting with greater effort expended on unfavorable NII misstatements.\n Data Availability: Data used in this study are available from public sources.\n JEL Classifications: M49.","PeriodicalId":48142,"journal":{"name":"Auditing-A Journal of Practice & Theory","volume":"1 1","pages":""},"PeriodicalIF":2.7000,"publicationDate":"2021-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"6","resultStr":"{\"title\":\"Auditor Responses to and Prevention of Non-Income-Increasing Misreporting: Evidence from Audit Fees and Restatements\",\"authors\":\"Jeffrey A. Pittman, Yuping Zhao\",\"doi\":\"10.2308/AJPT-18-115\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"\\n We document that non-income-increasing (NII) misreporting is important to investors and then investigate whether auditors respond to and prevent different types of NII misstatements. We categorize NII misstatements into those whose correction adversely (i.e., unfavorably) affect financial reports and those whose correction positively (i.e., favorably) affect financial reports. We find that audit fees are positively associated with unfavorable NII misstatements, but not with favorable NII misstatements. We examine whether auditors prevent quarterly misstatements from resulting in annual report misstatements and find that auditors are less likely to prevent both favorable and unfavorable NII quarterly report misstatements from resulting in annual report misstatements, with the audit efficacy being lower for favorable NII misstatements. In sum, our research indicates that auditors do attempt to constrain NII misreporting with greater effort expended on unfavorable NII misstatements.\\n Data Availability: Data used in this study are available from public sources.\\n JEL Classifications: M49.\",\"PeriodicalId\":48142,\"journal\":{\"name\":\"Auditing-A Journal of Practice & Theory\",\"volume\":\"1 1\",\"pages\":\"\"},\"PeriodicalIF\":2.7000,\"publicationDate\":\"2021-02-19\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"6\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Auditing-A Journal of Practice & Theory\",\"FirstCategoryId\":\"91\",\"ListUrlMain\":\"https://doi.org/10.2308/AJPT-18-115\",\"RegionNum\":3,\"RegionCategory\":\"管理学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q2\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Auditing-A Journal of Practice & Theory","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.2308/AJPT-18-115","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Auditor Responses to and Prevention of Non-Income-Increasing Misreporting: Evidence from Audit Fees and Restatements
We document that non-income-increasing (NII) misreporting is important to investors and then investigate whether auditors respond to and prevent different types of NII misstatements. We categorize NII misstatements into those whose correction adversely (i.e., unfavorably) affect financial reports and those whose correction positively (i.e., favorably) affect financial reports. We find that audit fees are positively associated with unfavorable NII misstatements, but not with favorable NII misstatements. We examine whether auditors prevent quarterly misstatements from resulting in annual report misstatements and find that auditors are less likely to prevent both favorable and unfavorable NII quarterly report misstatements from resulting in annual report misstatements, with the audit efficacy being lower for favorable NII misstatements. In sum, our research indicates that auditors do attempt to constrain NII misreporting with greater effort expended on unfavorable NII misstatements.
Data Availability: Data used in this study are available from public sources.
JEL Classifications: M49.