ebooks, audiobooks, and more for reads
Download The Auditors Report And Investor Behavior full books in PDF, epub, and Kindle. Read online The Auditors Report And Investor Behavior ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author: Ralph W. Estes
Publisher: Free Press
Published: 1982
Total Pages: 152
ISBN-13:
DOWNLOAD EBOOKDownload or read book The Auditor's Report and Investor Behavior written by Ralph W. Estes and published by Free Press. This book was released on 1982 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author: Salvatore Thomas Anthony Cianciolo
Publisher:
Published: 1975
Total Pages: 392
ISBN-13:
DOWNLOAD EBOOKDownload or read book Private Investors' Behavioral Response to Financial Forecasts and Related Auditor's Reports written by Salvatore Thomas Anthony Cianciolo and published by . This book was released on 1975 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author: Iraê Maria Guilherme Kaiser
Publisher:
Published: 2018
Total Pages:
ISBN-13:
DOWNLOAD EBOOKOver time, businesses have become more complex and financial reporting has progressed. As a result, the uncertainty, judgements and estimations that underpin financial statements have also increased. Thus, to reduce the information risk, one of investor's main approaches is to rely on audited financial statements. The auditor's report presents an opinion on the financial statements, which presents to the investor an opinion on the financial statements. However, the auditor's report has up until now been a standard pass/fail report, without more detailed information on how the audit procedures where conducted, or companies specific risk. Investors and other users of financial statements have demanded greater transparency and insight into auditing, because auditors are professionals who conduct their work behind the scenes. As a response, the International Auditing and Assurance Standards Board (IAASB) introduced changes to the auditor's report. This thesis investigates the usefulness of the information delivered to investors and whether there is a reduction in information asymmetry. A quantitative research approach in addition to panel data regressions analysed a sample of 252 listed companies in the Brazilian stock market, for the years 2015 and 2016. The results showed that a reduction in information asymmetry occurred after the implementation of the new disclosure regime. Future studies could examine the audit report impact closely to others factors, and also an qualitative research might give better inside from the investors perspective.
Download or read book Auditor's Reporting and Investor Behaviour written by Iraê Maria Guilherme Kaiser and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Over time, businesses have become more complex and financial reporting has progressed. As a result, the uncertainty, judgements and estimations that underpin financial statements have also increased. Thus, to reduce the information risk, one of investor's main approaches is to rely on audited financial statements. The auditor's report presents an opinion on the financial statements, which presents to the investor an opinion on the financial statements. However, the auditor's report has up until now been a standard pass/fail report, without more detailed information on how the audit procedures where conducted, or companies specific risk. Investors and other users of financial statements have demanded greater transparency and insight into auditing, because auditors are professionals who conduct their work behind the scenes. As a response, the International Auditing and Assurance Standards Board (IAASB) introduced changes to the auditor's report. This thesis investigates the usefulness of the information delivered to investors and whether there is a reduction in information asymmetry. A quantitative research approach in addition to panel data regressions analysed a sample of 252 listed companies in the Brazilian stock market, for the years 2015 and 2016. The results showed that a reduction in information asymmetry occurred after the implementation of the new disclosure regime. Future studies could examine the audit report impact closely to others factors, and also an qualitative research might give better inside from the investors perspective.
Author: Kim Ittonen
Publisher: University of Vaasa
Published: 2009
Total Pages: 211
ISBN-13: 9524762560
DOWNLOAD EBOOKTiivistelmä: Tilintarkastuskertomukset ja osakemarkkinat.
Download or read book Audit Reports and Stock Markets written by Kim Ittonen and published by University of Vaasa. This book was released on 2009 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tiivistelmä: Tilintarkastuskertomukset ja osakemarkkinat.
Author: Steven E. Kaplan
Publisher:
Published: 2014
Total Pages: 50
ISBN-13:
DOWNLOAD EBOOKWe investigate the incremental market reaction to first-time going concern audit reports (GCARs) relative to similarly distressed non-GCAR firms. We utilize a matched-sample research design to show that first-time GCARs are associated with incremental negative abnormal returns and increases in market-adjusted share turnover at the annual report filing date. Moreover, our results indicate that greater net selling by institutional investors (i.e., institutional flight) during the fiscal year increases the magnitude of these associations. We also find that first-time GCARs signal an increased likelihood of bankruptcy and weaker operating performance in the subsequent year, and that institutional flight prior to the GCAR moderates the severity of these signals. Taken together, our findings provide new evidence that first-time GCARs are incrementally informative beyond other financial statement information, and that the informativeness of the auditor's GCAR decision is moderated by the observed trading decisions of institutional investors.
Download or read book Does Institutional Investor Behavior Influence the Market Reaction to Going Concern Audit Reports? written by Steven E. Kaplan and published by . This book was released on 2014 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the incremental market reaction to first-time going concern audit reports (GCARs) relative to similarly distressed non-GCAR firms. We utilize a matched-sample research design to show that first-time GCARs are associated with incremental negative abnormal returns and increases in market-adjusted share turnover at the annual report filing date. Moreover, our results indicate that greater net selling by institutional investors (i.e., institutional flight) during the fiscal year increases the magnitude of these associations. We also find that first-time GCARs signal an increased likelihood of bankruptcy and weaker operating performance in the subsequent year, and that institutional flight prior to the GCAR moderates the severity of these signals. Taken together, our findings provide new evidence that first-time GCARs are incrementally informative beyond other financial statement information, and that the informativeness of the auditor's GCAR decision is moderated by the observed trading decisions of institutional investors.
Author: Qian Huang
Publisher:
Published: 2021
Total Pages:
ISBN-13:
DOWNLOAD EBOOKThe Public Company Accounting Oversight Board (PCAOB) has recently required auditors to disclose critical audit matters (CAMs), which are financial statement matters that involve especially challenging, subjective, or complex auditor judgments. The PCAOB contends that CAMs will increase the decision usefulness of the auditor's report and indirectly benefit investors by increasing audit and financial reporting quality. I examine whether investors react to CAM disclosures and whether they perceive any change in adopting firms' financial reporting quality. Using a difference-in-differences design, I find that (1) while there is no significant stock price reaction to CAMs on average, investors react negatively to CAMs disclosed by firms with high levels of short interest; (2) there is a significant increase in the quarterly earnings response coefficient for adopting firms. The effect is driven by big-N audit firms, and increases with the number of CAMs reported. Collectively, the evidence suggests that investors use CAMs to confirm their pre-existing opinions about a firm, and that they perceive an improvement in audit quality and financial reporting reliability due to the CAM disclosure requirement.
Download or read book Do Critical Audit Matter Disclosures Impact Investor Behavior? written by Qian Huang and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Public Company Accounting Oversight Board (PCAOB) has recently required auditors to disclose critical audit matters (CAMs), which are financial statement matters that involve especially challenging, subjective, or complex auditor judgments. The PCAOB contends that CAMs will increase the decision usefulness of the auditor's report and indirectly benefit investors by increasing audit and financial reporting quality. I examine whether investors react to CAM disclosures and whether they perceive any change in adopting firms' financial reporting quality. Using a difference-in-differences design, I find that (1) while there is no significant stock price reaction to CAMs on average, investors react negatively to CAMs disclosed by firms with high levels of short interest; (2) there is a significant increase in the quarterly earnings response coefficient for adopting firms. The effect is driven by big-N audit firms, and increases with the number of CAMs reported. Collectively, the evidence suggests that investors use CAMs to confirm their pre-existing opinions about a firm, and that they perceive an improvement in audit quality and financial reporting reliability due to the CAM disclosure requirement.
Author: Keval Amin
Publisher:
Published: 2020
Total Pages:
ISBN-13:
DOWNLOAD EBOOKHigh investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with this notion, we document that auditors charge lower fees and report GCOs less conservatively when sentiment is high. However, this reduction in reporting conservatism is unwarranted; results reveal that auditors are less likely to issue GCOs to clients which subsequently file for bankruptcy during high sentiment periods. We conduct additional tests to examine whether auditors' litigation costs indeed vary with sentiment and document that auditors are less likely to be sued and the market reacts less negatively to misstatement announcements when sentiment is high. Collectively, our findings suggest that, although misstatement risk is increasing with sentiment, auditors' litigation risk actually declines.
Download or read book Investor Sentiment, Misstatements, and Auditor Behavior written by Keval Amin and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with this notion, we document that auditors charge lower fees and report GCOs less conservatively when sentiment is high. However, this reduction in reporting conservatism is unwarranted; results reveal that auditors are less likely to issue GCOs to clients which subsequently file for bankruptcy during high sentiment periods. We conduct additional tests to examine whether auditors' litigation costs indeed vary with sentiment and document that auditors are less likely to be sued and the market reacts less negatively to misstatement announcements when sentiment is high. Collectively, our findings suggest that, although misstatement risk is increasing with sentiment, auditors' litigation risk actually declines.
Author: W. Brooke Elliott
Publisher:
Published: 2020
Total Pages: 55
ISBN-13:
DOWNLOAD EBOOKWe present new theory and experimental findings indicating that investors ascribe value to firms that use higher financial-reporting quality (FRQ), controlling for the influence of higher FRQ on their estimates of these firms' fundamental value. To guide our investigation, we draw on the cooperation literature in accounting, finance and psychology. We identify expanded audit reports, particularly auditor commentary, as a mechanism that credibly communicates whether a firm uses higher FRQ. Auditor commentary increases investors' willingness to pay (WTP) more to own shares of a firm using higher FRQ than a competing firm using lower FRQ. We also provide process evidence that investors perceive higher FRQ as cooperative behavior by measuring their affective responses and cognitive beliefs, which mediate the influence of audit commentary on investors' increased WTP for higher FRQ. A second experiment bolsters the link between investors' affective and cognitive responses to a firm's FRQ and perceived cooperative behavior. Overall, we contribute to the accounting literature by motivating a reinterpretation of studies on value relevance and mispricing. We also provide theory and evidence that there is greater value in expanded audit reports than previously understood, and this value likely has standard-setting and audit-pricing implications.
Download or read book Do Investors Value Higher Financial-Reporting Quality, and Can Expanded Audit Reports Unlock This Value? written by W. Brooke Elliott and published by . This book was released on 2020 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present new theory and experimental findings indicating that investors ascribe value to firms that use higher financial-reporting quality (FRQ), controlling for the influence of higher FRQ on their estimates of these firms' fundamental value. To guide our investigation, we draw on the cooperation literature in accounting, finance and psychology. We identify expanded audit reports, particularly auditor commentary, as a mechanism that credibly communicates whether a firm uses higher FRQ. Auditor commentary increases investors' willingness to pay (WTP) more to own shares of a firm using higher FRQ than a competing firm using lower FRQ. We also provide process evidence that investors perceive higher FRQ as cooperative behavior by measuring their affective responses and cognitive beliefs, which mediate the influence of audit commentary on investors' increased WTP for higher FRQ. A second experiment bolsters the link between investors' affective and cognitive responses to a firm's FRQ and perceived cooperative behavior. Overall, we contribute to the accounting literature by motivating a reinterpretation of studies on value relevance and mispricing. We also provide theory and evidence that there is greater value in expanded audit reports than previously understood, and this value likely has standard-setting and audit-pricing implications.
Author: Brian Matthew- Goodson
Publisher:
Published: 2015
Total Pages: 123
ISBN-13:
DOWNLOAD EBOOKThis study experimentally examines whether and how two potential changes to the audit report's structure affect the extent to which nonprofessional investors attend to the report's content when evaluating a potential investment, and whether the potential effects differ across levels of investor sophistication. Specifically, I examine the impact of descriptive paragraph headings and the relative location of the opinion paragraph on judgments of financial statement reliability and investment decisions. Results indicate that when the audit report includes descriptive paragraph headings, less sophisticated investors perceive the report to be more readable, which, in turn, leads them to attribute higher levels of reliability to the financial statements and increases their likelihood to invest. I also find that perceptions of processing ease are more important to less sophisticated investors than the degree to which the audit report's actual content is processed. More sophisticated investors appear to be insulated from this heuristic bias. In a second experiment, I examine whether the audit report's structure affects investors' ability to identify departures from the standard unqualified opinion. Specifically, when the audit opinion is adverse, the relative location of the opinion paragraph moderates the effect of headings across levels of investor sophistication. Overall, the results of this study suggest that the audit report's structure significantly influences the extent to which nonprofessional investors' attend to the report's content, and that the audit report's content informs judgments of financial statement reliability and investment decisions..
Download or read book How Does the Audit Report's Structure Affect Nonprofessional Investors' Attention to Its Content? written by Brian Matthew- Goodson and published by . This book was released on 2015 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study experimentally examines whether and how two potential changes to the audit report's structure affect the extent to which nonprofessional investors attend to the report's content when evaluating a potential investment, and whether the potential effects differ across levels of investor sophistication. Specifically, I examine the impact of descriptive paragraph headings and the relative location of the opinion paragraph on judgments of financial statement reliability and investment decisions. Results indicate that when the audit report includes descriptive paragraph headings, less sophisticated investors perceive the report to be more readable, which, in turn, leads them to attribute higher levels of reliability to the financial statements and increases their likelihood to invest. I also find that perceptions of processing ease are more important to less sophisticated investors than the degree to which the audit report's actual content is processed. More sophisticated investors appear to be insulated from this heuristic bias. In a second experiment, I examine whether the audit report's structure affects investors' ability to identify departures from the standard unqualified opinion. Specifically, when the audit opinion is adverse, the relative location of the opinion paragraph moderates the effect of headings across levels of investor sophistication. Overall, the results of this study suggest that the audit report's structure significantly influences the extent to which nonprofessional investors' attend to the report's content, and that the audit report's content informs judgments of financial statement reliability and investment decisions..
Author: United States Government Accountability Office
Publisher: Lulu.com
Published: 2019-03-24
Total Pages: 234
ISBN-13: 0359536395
DOWNLOAD EBOOKAudits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.
Download or read book Government Auditing Standards - 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.
