Author: Jim Specht
Publisher:
ISBN:
Category :
Languages : en
Pages : 159
Book Description
An Empirical Examination of Litigation Against Auditors Over Time
Author: Jim Specht
Publisher:
ISBN:
Category :
Languages : en
Pages : 159
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 159
Book Description
An Empirical Examination of Litigation Against Auditors Over Time
Author: James Specht
Publisher:
ISBN:
Category : Accountants
Languages : en
Pages : 318
Book Description
Publisher:
ISBN:
Category : Accountants
Languages : en
Pages : 318
Book Description
Audit Quality Examined One Large Cpa Firm at a Time
Author: Ross D. Fuerman
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
Book Description
The largest CPA firms have been regarded as quality-differentiated auditors. This has been a prominent assumption of empirical research in accounting and auditing. Yet, prior research has only tested whether the largest CPA firms, in the aggregate, are quality-differentiated auditors. This paper contributes to the audit quality literature by individually examining each of the largest CPA firms. This new approach is timely, given the questions that have been raised concerning Arthur Andersen. Each Big Six CPA firm was compared to the non-Big Six CPA firms, using post-Private Securities Litigation Reform Act of 1995 data. The outcomes of auditors in civil and criminal litigation and administrative proceedings were analyzed using a taxonomy based on the corporate misconduct and economic analysis of legal process literatures. With the exception of Arthur Andersen, each of the Big Six CPA firms was individually found to be a higher quality auditor than the non-Big Six. The null hypothesis of no difference between the outcomes of each of the Big Six firms (except Arthur Andersen) and the non-Big Six was rejected at plt;.05. Since the lawsuits, filed in 1996-1998, were based on allegedly misstated 1995-1997 financial statements, this suggests that a deterioration in the audit quality of Arthur Andersen occurred no later than the mid-1990's. It is empirical evidence of a precursor of the eventual failure of the firm. The research results thus suggest that the Enron audit document destruction obstruction of justice conviction in June 2002 was the culmination of a gradual, firm-wide deterioration that was the cause of the destruction of Arthur Andersen.
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
Book Description
The largest CPA firms have been regarded as quality-differentiated auditors. This has been a prominent assumption of empirical research in accounting and auditing. Yet, prior research has only tested whether the largest CPA firms, in the aggregate, are quality-differentiated auditors. This paper contributes to the audit quality literature by individually examining each of the largest CPA firms. This new approach is timely, given the questions that have been raised concerning Arthur Andersen. Each Big Six CPA firm was compared to the non-Big Six CPA firms, using post-Private Securities Litigation Reform Act of 1995 data. The outcomes of auditors in civil and criminal litigation and administrative proceedings were analyzed using a taxonomy based on the corporate misconduct and economic analysis of legal process literatures. With the exception of Arthur Andersen, each of the Big Six CPA firms was individually found to be a higher quality auditor than the non-Big Six. The null hypothesis of no difference between the outcomes of each of the Big Six firms (except Arthur Andersen) and the non-Big Six was rejected at plt;.05. Since the lawsuits, filed in 1996-1998, were based on allegedly misstated 1995-1997 financial statements, this suggests that a deterioration in the audit quality of Arthur Andersen occurred no later than the mid-1990's. It is empirical evidence of a precursor of the eventual failure of the firm. The research results thus suggest that the Enron audit document destruction obstruction of justice conviction in June 2002 was the culmination of a gradual, firm-wide deterioration that was the cause of the destruction of Arthur Andersen.
An Empirical Analysis of the Insurance Hypothesis of Auditing, Audit Quality and Auditor Litigation
Author: Carl J. Pacini
Publisher:
ISBN:
Category : Accounting firms
Languages : en
Pages : 270
Book Description
Publisher:
ISBN:
Category : Accounting firms
Languages : en
Pages : 270
Book Description
An Empirical Investigation of the Impact of Central Bank of Denver on Securities Disclosure-related Auditor Litigation Risk
Author: Ross D. Fuerman
Publisher:
ISBN:
Category : Auditors
Languages : en
Pages : 220
Book Description
Publisher:
ISBN:
Category : Auditors
Languages : en
Pages : 220
Book Description
(Monograph) Studies in Accounting Research #33, Empirical Research in Auditor Litigation
Author: Zoe-Vonna Palmrose
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Studies in Accounting Research #33 provides guidance for conducting empirical research on auditor litigation and for using data on auditor litigation in teaching. To facilitate research and teaching, the monograph includes a CD with a Database. The Database has over 1,000 client observations with audit litigation involving the Big Five and their legacy firms. Non-Big Five firms are included on joint litigation. The Database includes litigation over allegations of audit failure on audits from 1960 through 1995, as long as legal actions were filed by end of 1995.The Database contains an extensive amount of information. For example, it has information on clients and auditors, accounting and auditing issues, legal characteristics and issues, regulatory actions, and litigation resolutions. All information is from public sources available through early 1999.The Database should be easily usable by academics, practitioners, and students alike. It is designed for use with Microsoft Access (the CD has three versions for Access 2.0, 97, and 2000). While the Database as published provides a rich source of litigation-related information, it is also designed so that users can customize it to meet their particular needs. For example, the Database can be updated with further information about the observations or with additional observations, such as audit litigation filed after 1995. The monograph makes a number of suggestions for using the Database in a variety of research settings. The Database is designed for stand-alone use or it can be used in combination with data from other sources. The discussion of research considerations and applications encompasses both the usefulness and limitations of the Database.Further, the Database can be used in teaching a variety of graduate and undergraduate courses, including courses on financial accounting, financial statement analysis, auditing, securities litigation, accountant's liability, governance, and professional regulation and institutions. The discussion of teaching applications includes suggestions on opportunities for bringing litigation-related topics into the classroom through supplementing lecture materials, promoting active learning, developing new teaching cases, extending and enriching existing case materials, and designing student projects, assignments, and other educational activities.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Studies in Accounting Research #33 provides guidance for conducting empirical research on auditor litigation and for using data on auditor litigation in teaching. To facilitate research and teaching, the monograph includes a CD with a Database. The Database has over 1,000 client observations with audit litigation involving the Big Five and their legacy firms. Non-Big Five firms are included on joint litigation. The Database includes litigation over allegations of audit failure on audits from 1960 through 1995, as long as legal actions were filed by end of 1995.The Database contains an extensive amount of information. For example, it has information on clients and auditors, accounting and auditing issues, legal characteristics and issues, regulatory actions, and litigation resolutions. All information is from public sources available through early 1999.The Database should be easily usable by academics, practitioners, and students alike. It is designed for use with Microsoft Access (the CD has three versions for Access 2.0, 97, and 2000). While the Database as published provides a rich source of litigation-related information, it is also designed so that users can customize it to meet their particular needs. For example, the Database can be updated with further information about the observations or with additional observations, such as audit litigation filed after 1995. The monograph makes a number of suggestions for using the Database in a variety of research settings. The Database is designed for stand-alone use or it can be used in combination with data from other sources. The discussion of research considerations and applications encompasses both the usefulness and limitations of the Database.Further, the Database can be used in teaching a variety of graduate and undergraduate courses, including courses on financial accounting, financial statement analysis, auditing, securities litigation, accountant's liability, governance, and professional regulation and institutions. The discussion of teaching applications includes suggestions on opportunities for bringing litigation-related topics into the classroom through supplementing lecture materials, promoting active learning, developing new teaching cases, extending and enriching existing case materials, and designing student projects, assignments, and other educational activities.
An Empirical Examination of the Hindsight Bias Phenomenon in Evaluation of Auditor Decisions
Author: David Jordan Lowe
Publisher:
ISBN:
Category : Auditing
Languages : en
Pages : 121
Book Description
Publisher:
ISBN:
Category : Auditing
Languages : en
Pages : 121
Book Description
Securities Class Actions in the United States and Canada Against Chinese Companies and Their Auditors
Author: Nancy Chun Feng
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
Chinese companies have accessed the public capital markets of the US and Canada more frequently in recent years. This paper provides for the first time empirical evidence documenting the characteristics of private securities class action lawsuits (filed in the US and Canada) against Chinese companies and their auditors.Analysis of lawsuits worldwide shows that Chinese companies are positively associated with auditors being named defendants and experiencing a negative outcome (for example, related government enforcement actions and/or settlement payments to terminate class actions). A group of companies from countries outside the US and Canada was compared to the Chinese companies. For the comparison group, the factors that were associated with auditors being named defendants and experiencing a negative outcome are consistent with those that have been found in prior auditor litigation research. Conversely, the Chinese companies are characterized by a different pattern of litigation. Among the traditional factors, only fraud is associated with auditor litigation. In addition, the use of a small CPA firm auditor with the local audit engagement team office physically located in the US or Canada (as opposed to the local audit engagement team office being physically located in the People's Republic of China (“PRC”)) is associated with auditor litigation. We find limited evidence that the use of a reverse merger to go public is positively associated with auditor litigation.We analyzed the Chinese lawsuits' settlements. Aggregate settlement amounts are positively associated with the occurrence of an auditor settlement and with the class period length. Auditor settlement amounts are positively associated with the use of a large CPA firm auditor with the local audit engagement team office physically located in the US or Canada (as opposed to the local audit engagement team office being physically located in the PRC), class period length, and fraud. These findings suggest that the amount of litigation settlements of large CPA firms with the local audit engagement team office physically located in the PRC may have been reduced by their refusal to provide audit documentation requested by the Securities and Exchange Commission.
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
Chinese companies have accessed the public capital markets of the US and Canada more frequently in recent years. This paper provides for the first time empirical evidence documenting the characteristics of private securities class action lawsuits (filed in the US and Canada) against Chinese companies and their auditors.Analysis of lawsuits worldwide shows that Chinese companies are positively associated with auditors being named defendants and experiencing a negative outcome (for example, related government enforcement actions and/or settlement payments to terminate class actions). A group of companies from countries outside the US and Canada was compared to the Chinese companies. For the comparison group, the factors that were associated with auditors being named defendants and experiencing a negative outcome are consistent with those that have been found in prior auditor litigation research. Conversely, the Chinese companies are characterized by a different pattern of litigation. Among the traditional factors, only fraud is associated with auditor litigation. In addition, the use of a small CPA firm auditor with the local audit engagement team office physically located in the US or Canada (as opposed to the local audit engagement team office being physically located in the People's Republic of China (“PRC”)) is associated with auditor litigation. We find limited evidence that the use of a reverse merger to go public is positively associated with auditor litigation.We analyzed the Chinese lawsuits' settlements. Aggregate settlement amounts are positively associated with the occurrence of an auditor settlement and with the class period length. Auditor settlement amounts are positively associated with the use of a large CPA firm auditor with the local audit engagement team office physically located in the US or Canada (as opposed to the local audit engagement team office being physically located in the PRC), class period length, and fraud. These findings suggest that the amount of litigation settlements of large CPA firms with the local audit engagement team office physically located in the PRC may have been reduced by their refusal to provide audit documentation requested by the Securities and Exchange Commission.
The Effects of Budget Pressure on Audit Firms
Author: Carol Jean McNair
Publisher:
ISBN:
Category : Accounting firms
Languages : en
Pages : 366
Book Description
Publisher:
ISBN:
Category : Accounting firms
Languages : en
Pages : 366
Book Description
An Empirical Examination of the Hindsight Bias Phenomenon in Evaluation of Auditor Decisions
Author: Donald H. Swartz
Publisher:
ISBN:
Category : Auditors' reports
Languages : en
Pages : 94
Book Description
Publisher:
ISBN:
Category : Auditors' reports
Languages : en
Pages : 94
Book Description