Audit quality and information asymmetry between traders

Clinch, Greg; Stokes, Donald J.; Zhu, Tingting

doi:10.1111/j.1467-629x.2011.00411.x

Cited by 60 publications

(45 citation statements)

References 51 publications

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“…Other emerging research is being undertaken in a variety of areas, including internal versus external auditors (Rose et al ., ; Sarens et al ., ); corporate governance and auditing (Aldamen et al ., ; Bliss, ; Bolton, ; Chan et al ., ; Contessotto and Moroney, ; Purcell et al ., ; Seamer, ; Wu et al ., ); the effects of international accounting standards (Samsonova‐Taddei, ); financial crises and auditing (Carey et al ., ; Xu et al ., ); non‐audit fees (Habib, ); and the effect of audit quality on information asymmetry (Clinch et al ., ). The variety and depth of auditing research is extremely impressive and the field looks likely to grow even stronger in the future.…”

Section: Resultsmentioning

confidence: 97%

Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda

Linnenluecke

Birt

Chen

et al. 2017

Abacus

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This paper uses bibliographic mapping techniques to map the research conversation in four Pacific Basin accounting journals listed on the Social Sciences Citation Index (Abacus, Accounting and Finance, Australian Accounting Review, and the Australian Journal of Management). We identify the main research streams in these journals as Accounting Standards, Environmental Accounting, Earnings Management, Disclosure, Conservatism, Auditing, Impairment, Cost of Capital, and Corporate Governance. We critically review each research stream, identify emerging research trends, and suggest an agenda for future research on accounting in the Pacific Basin.

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Section: Resultsmentioning

confidence: 97%

Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda

Linnenluecke

Birt

Chen

et al. 2017

Abacus

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“…As external audit complements the regulatory and supervisory infrastructure established to ensure credibility of financial reporting for efficient allocation of resources in the capital markets (Azizkhani et al, 2010;Clinch et al, 2012) and the perceived credibility of the audited financial statements is a function of the AEG, the AEG may lead to misallocation of capital resources.…”

Section: Audit Expectation Gapmentioning

confidence: 99%

Antecedents and consequences of audit expectation gap

Noghondari

Foong

2013

Managerial Auditing Journal

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This study aims to investigate the effects of individual knowledge/experience on the audit expectation gap of loan officers in Malaysia and the subsequent effect of the audit expectation gap on their loan decision quality. In addition, the mediation role of the audit expectation gap is examined. Design/methodology/approach -Copies of a structured questionnaire were randomly distributed to three hundred and twenty loan officers of the top four commercial banks in Malaysia. A total of 212 completed questionnaires were analysed using structural equation modelling. Findings -The findings indicate that the knowledge/experience factors could significantly mitigate the audit expectation gap. More importantly, the audit expectation gap is found to adversely affect the loan decision quality. The mediating role of the audit expectation gap is also supported.Research limitations/implications -The findings of this study may not be generalizable to other economic, cultural and political settings. Practical implications -Banks may narrow their loan officers' audit expectation gap and hence, their non-performing loans through selective recruitment or appropriate knowledge/skill enhancement in-house training programmes. Originality/value -This study provides the needed empirical evidence of the adverse effect of audit expectation gap on the loan decision quality of bank officers in Malaysia. Unlike the 2009 findings of Noghondari and Foong, which was based on an Islamic banking context in Iran, this study, which was based on the conventional banking context, found that accounting-related and job-related work experience of bank officers had significantly mitigated the audit expectation gap. The findings have important implications on the recruitment and training of loan officers by banks.

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“…Nesse cenário, tem-se como premissa que, ao elaborar o relatório, o auditor evitaria que as informações divulgadas pelas empresas fossem enviesadas, fato que poderia minimizar a assimetria de informação (FRANCIS;WILSON, 1988;CLINCH et al, 2012). Isso porque a auditoria tem função de averiguar e emitir opinião sobre as demonstrações contábeis publicadas pelas entidades, atentando, com razoável segurança, que as demonstrações contábeis não contêm distorções materiais (DANTAS et al, 2016).…”

Section: Introductionunclassified

Principais assuntos de auditoria e os resultados das empresas listadas na IBRX 100

Camargo

Rodrigues

Machado

et al. 2019

R. Contemp. Contab.

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O estudo objetivou verificar se há associação entre os Principais Assuntos de Auditoria (PAA), item do Novo Relatório do Auditor, e o resultado do exercício (lucro/prejuízo) das entidades que compõem o índice IBRX 100, para 2016 e 2017. A pesquisa é oportuna, dado que as mudanças propostas pelas novas normas ocorreram em 2016 e que, portanto, o tema ainda foi pouco explorado no Brasil. Ademais, baseado em Hopwood et al. (1989) e na Teoria da Agência, espera-se contribuir para a literatura identificando se determinados assuntos apontados como PAAs podem predizer insolvência – ou seja, se há relação desses especificamente com o prejuízo das empresas. Por meio de análise de correspondência, identificaram-se 26 categorias de PAAs e os testes de robustez indicaram três PAAs associados a prejuízo: Tributos, Riscos e fraudes ligados a processos e Reorganização Societária. Tais categorias, portanto, poderiam configurar as “bandeiras vermelhas” de Hopwood et al. (1989), sendo indicativos de insolvência e/ou falência para empresas que apresentaram tais PAAs. Ademais, tais resultados contribuem para o entendimento sobre o julgamento profissional dos auditores, sendo que PAAs sobre Tributos, Riscos de Fraudes e Processos e Reorganização Societária podem indicar tópicos que demandam maior atenção dos profissionais por terem potencialmente maior impacto na continuidade das entidades (i.e., risco de insolvência e/ou falência).

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Audit quality and information asymmetry between traders

Cited by 60 publications

References 51 publications

Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda

Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda

Antecedents and consequences of audit expectation gap

Principais assuntos de auditoria e os resultados das empresas listadas na IBRX 100

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