Earnings management and audit quality: stakeholders’ perceptions

Audit adjustments and earnings quality

While there are many alternative proxies for “earnings quality”, there is little evidence as to what auditors consider to be indicative of high earnings quality. To answer this, we examine the adjustments that auditors require companies to make to earnings during year-end audits. There are three findings. First, audit adjustments serve to increase earnings persistence, smoothness, and accrual q...

Audit effort and earnings management

We test the effect of audit effort on earnings management using a unique database of hours worked by auditors on 9,738 audits in Greece between 1994 and 2002. When audit hours are lower, (1) abnormal accruals are more often positive than negative, (2) positive abnormal accruals are larger, and (3) companies are more likely to manage earnings upwards in order to meet or beat the zero earnings be...

The Impact of Audit Quality on Earnings Management: An Experimental Study with Evidence from IPO

According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remar...

The drivers of audit quality: auditors’ perceptions

Knowledge Management Culture Audit: Capturing Tacit Perceptions and Barriers

A firm’s capacity to efficiently create value from knowledge held by employees and embedded in processes is a key strategic resource. Knowledge Management (KM) seeks to systematically improve that capacity. The first critical step for implementing KM in organizations is the Knowledge Audit. Current audit practices use interviews and questionnaires to understand the KM processes that the organiz...