Has the lack of use of the qualified audit opinion turned it into the “Rotten Kid” threat?

Cipriano, Michael; Hamilton, Erin L.; Vandervelde, Scott D.

doi:10.1016/j.cpa.2016.10.001

Cited by 24 publications

(18 citation statements)

References 29 publications

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“…The results of this study are not in line with the research conducted by Cohen et al which states that professional scepticism has a positive and significant influence [10], as well as research conducted by Kroukamp and Cloete [9] and Rusman et al [11] both of which have results research that professional scepticism has the most dominant influence on the accuracy of giving opinions by auditors. As well as research conducted by Cipriano and Vandervelde which states that professional scepticism has a positive and significant effect on the accuracy of giving opinions by external auditors [12].…”

Section: G Professional Skepticism (X4) On the Accuracy Of Givingmentioning

confidence: 92%

The Effect of Independence, Integrity, Professionalism, and Professional Skepticism on the Accuracy of Giving Audit Opinion (The Case of Audit Board of the Republic of Indonesia)

Kamil¹,

Fathonah²

2020

Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)

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The purpose of the research was to explore the influence of Independence, Integrity, Professionalism and Professional Scepticism on the Accuracy of Giving Audit Opinion by Government auditors, in this case the Audit Board of the Republic of Indonesia (BPK-RI). The research seeks to broaden empirical evidence on the relationship between the influence of Independence, Integrity, Professionalism and Professional Scepticism with respect to Accuracy of Giving Audit Opinion by BPK-RI. The research using associative method approach. Data analysis using Partial Least Square (PLS) approach which is a model of Structural Equation Modelling (SEM) that is component or variant based. Data analysis methods consist of: (1) Outer Model Analysis, (2) Inner Model Analysis, and (3) Hypothesis Testing. Data were came from a convenient selected sample of 55 auditors spread in 3 (three) AKN (Government Auditor). The findings show that Independence has positive and significant influence on the accuracy of giving audit opinion by BPK-RI, Integrity has positive and no significant effect on the accuracy of giving audit opinion by BPK-RI, Professionalism has positive and significant effect on the accuracy of giving audit opinion by BPK-RI, and Professional scepticism has negative and no significant effect on the accuracy of giving audit opinion by BPK-RI.

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Section: G Professional Skepticism (X4) On the Accuracy Of Givingmentioning

confidence: 92%

The Effect of Independence, Integrity, Professionalism, and Professional Skepticism on the Accuracy of Giving Audit Opinion (The Case of Audit Board of the Republic of Indonesia)

Kamil¹,

Fathonah²

2020

Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)

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“…Essa linha de raciocínio é defendida por Robu e Robu (2015) e por Lin et al (2011), os quais consideram que as empresas podem optar por relatórios com ressalva por motivações maiores, como tunneling e rentseeking. Além disso, esse indício está de acordo com Cipriano et al (2017), que consideram que relatórios sem ressalva podem criar incertezas quanto à presença de distorções relevantes nas DFPs, que podem existir, mas que não foram identificadas pelo auditor. Os autores salientam que relatórios com ressalva são considerados pelo mercado como mais transparentes, porém essa argumentação é contrária à de Choi e Jeter (1992), que avaliam que os relatórios modificados reduzem a reação do mercado ao lucro líquido divulgado pelas empresas.…”

Section: Apresentação E Discussão Dos Resultadosunclassified

“…Com isso, há indicação de que o mercado pode reagir, frente à ênfase, com a incerteza sobre as informações auditadas. Esses achados, assim como os sinais de relação positiva entre os relatórios com ressalva e o retorno das ações, estão de acordo com o que defendem Cipriano et al (2017), no sentido de que os relatórios sem ressalva podem alimentar as incertezas dos usuários de haver distorções nas DFPs, mas que não foram identificadas pelo auditor, o que geraria ceticismo. Além disso, outro ponto a ser considerado é o fato de que receber um relatório com ressalva é praticamente uma opção da empresa auditada, que, pelo fato de o custo desse relatório ser menor que o benefício que ele possa gerar, decide não atender às alterações sugeridas pela auditoria, provavelmente por motivações como tunneling e rentseeking (Lin et al, 2011;Robu & Robu, 2015).…”

Section: Considerações Finaisunclassified

Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Souza¹,

Nardi²

2018

CGG

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RESUMONo que diz respeito à redução da assimetria informacional em decisões de investimentos, os investidores podem diminuir incertezas na avaliação de uma empresa, ao analisar o relatório de auditoria independente, uma vez que ele é capaz de atestar a fidelidade às normas contábeis das informações divulgadas pelas empresas. Nesse contexto, o objetivo deste estudo foi analisar a relação entre a opinião divulgada no relatório do auditor independente e o retorno das ações das empresas brasileiras de capital aberto. Foi considerado o período de 2010 a 2014, mediante análise de correlação, teste de Mann Whitney e regressão com dados dispostos em painel. Estatisticamente, os resultados não foram conclusivos quanto ao impacto do tipo de opinião da auditoria no retorno das ações. Houve indícios de que há reação negativa do mercado frente aos relatórios com ênfase e reação positiva na presença de relatórios limpos e com ressalva, o que pode significar que a publicação de um relatório com ressalva pode gerar maior ganho para a empresa do que o prejuízo dessa publicação. A pesquisa aponta para a necessidades de revisão e reflexão, tanto pelas empresas de auditoria quanto pelos órgãos reguladores, quanto à representatividade da atuação do auditor no mercado de capitais.Palavras-chave: Relatório limpo; Relatório modificado; Retorno das ações. ABSTRACT In considering the reduction of informational asymmetry on investment decisions, investors

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“…To start with the PCAOB, it is important to know which could change its responses to qualified audit opinion. Now that the rate of restatements by each year is higher than the prior of qualified opinions, it could be better to permit the auditors to issue qualified audit opinions instead of imposing restrictions on the audit report concerned about qualified audit opinions of listing companies (Cipriano et al, 2016). Simnett and Huggins (2014) concluded that the current reporting model is deficient and could be improved for the stakeholders have less interests and motives to utilize the report.…”

Section: Introductionmentioning

confidence: 99%

“…PCAOB issued AS 3101.20 in 2015 explaining that a qualified opinion assures that the financial statements are fairly presented in all material aspects, with only one part having quality problems. An adverse opinion and a disclaimer of opinion, just the opposite, cannot offer guarantee concerning the financial statements to the investors and other relative beneficiaries (Cipriano, Hamilton, & Vandervelde, 2016).…”

Section: Introductionmentioning

confidence: 99%

Literature Review on Audit Opinion

Jing-zhen¹,

Xin²

2017

JMAA

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To review the literature could always help us to find the limitation of past studies. This paper offers a literature review concerned with audit opinion from foreign studies to Chinese studies. Audit opinion directly reflects whether the financial statement is true and fair or not, which is the reason why audit is necessary and important.These archives could be divided into two parts, whose elements could influence the quality of audit opinion and how audit opinion impacts on companies and market. The stakeholders value audit opinion and they have different demands of audit opinion to meet their demand. For example, tax department needs the information of revenue and profit to collect tax, creditors need to know the exact number of assets to guarantee their loans, and investors prefer to learn the profitability of companies from financial statements. The article provides a holistic view of audit opinion to give other researchers an implication on which part of audit opinion needs to be studied further.

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Has the lack of use of the qualified audit opinion turned it into the “Rotten Kid” threat?

Cited by 24 publications

References 29 publications

The Effect of Independence, Integrity, Professionalism, and Professional Skepticism on the Accuracy of Giving Audit Opinion (The Case of Audit Board of the Republic of Indonesia)

The Effect of Independence, Integrity, Professionalism, and Professional Skepticism on the Accuracy of Giving Audit Opinion (The Case of Audit Board of the Republic of Indonesia)

Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Literature Review on Audit Opinion

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