...: Accepted by Joseph H. Schroeder, under the Senior Editorship of Jayanthi Krishnan. 07 02 2022 30 06 2023 17 07 2023 2023 COVID-19 coronavirus audit quality delayed filings discretionary accruals material weakness errors remote work pandemic The coronavirus...

... difference-in-differences design after limiting the sample to companies that have a prior-auditor CFO, and are generally robust to the incorporation of firm fixed effects in the full sample. Although we urge caution in making strong causal inferences related to the discretionary accruals results, on balance...

... conducted by those firms. The results indicate that knowledge sharing within an audit firm is positively associated with audit quality as manifested in lower absolute discretionary accruals and the issuance of more unfavorable audit opinions. We also find that knowledge sharing within audit firms...

..., including controls for endogeneity, and are consistent with well-connected CEOs providing economic benefits to their firms, rather than using their position to extract rents at the expense of shareholders. 2018 social connections financial reporting quality discretionary accruals restatements...

... different models to estimate discretionary accruals: (1) the modified Jones (1991) model adopted by Kothari, Leone, and Wasley (2005) ; (2) the model of Ball and Shivakumar (2006) , which controls for the systematic timeliness of accruals in recognizing economic gain and loss; and (3) the modified Jones...

...-audit partner interlocks. Audit quality is proxied by the likelihood of issuing a first-time going-concern modified audit report and the absolute value of discretionary accruals. Regressions on unrestricted and propensity score matched samples provide consistent evidence that audit partner dependence...

... financial reporting quality in these quarters with that in non-lame duck auditor quarters. Using discretionary accruals and financial statement misstatements as proxies for financial reporting quality, we find that financial reporting quality is higher in lame duck auditor situations, suggesting that lame...

... of discretionary accruals to meet or beat analysts' earnings-per-share (EPS) consensus forecasts ( Barua, Legoria, and Moffitt 2006 ; Davis, Soo, and Trompeter 2009 ). We complement this measure with an audit quality test using going-concern reporting. Our results show financial reporting quality is lower...

... the incentive and the ability to use discretionary accruals to meet or beat the consensus earnings forecast. We find a negative relationship between the level of abnormal audit fees paid by the client and the likelihood of using discretionary accruals to meet or beat the consensus analyst forecast. The evidence...

...Brian T. Carver; Carl W. Hollingsworth; Jonathan D. Stanley SUMMARY This study examines whether recent auditor downgrade activity is associated with subsequent changes in clients' discretionary accruals. The market for audit services has undergone dramatic change in recent years, resulting...

... must be audited and signed by the two signing auditors as well as by an audit firm. For accruals analyses, we find that differential discretionary accruals due to industry expertise are driven by a combination of firm and partner expertise. For audit opinion analyses, we find that differential...