Análise Da Relação Entre Níveis Diferenciados De Governança Corportativa E Inconformidades Dos Relatórios Dos Auditores Independentes

Do auditors react to market behaviour?

“…With regard to the control variables, the tests found there was a negative relationship between the entity client who was listed in the differentiated corporate governance levels (GOV) and the modification of opinion (MOD) in the two models, which suggests that the entities that belong to the levels of corporate governance in the B3 Stock Exchange, provide more trustworthy information for the shareholders and that this reduces the likelihood of a modified opinion being issued by the auditor. These results are in line with the findings of Alexandre and Lopes Junior (2018); moreover, Marques et al (2018). Marques, Santos, Souza, Amaral, Souza and Louzada (2015) also obtained results that were compatible in so far as the entities that belong to one of the levels of governance (and are audited by the big four) have little prospect of experiencing a modification of opinion.…”

“…Although the market reacted negatively to this emphasis, in accordance with the evidence provided by Carvalho et al (2019), it was not designed to communicate discrepancies found in the financial statements, but rather to allow the auditor to draw attention to any information considered to be relevant. In this way, the auditor can issue emphasis of matter paragraphs to companies that have good levels of governance, with the aim of highlighting any key data that is suited to interpreting the statements and explaining this positive relationship, which is contrary to the findings of Alexandre et. al (2018).…”