Reporting accountant appointments and accounting restatements: Evidence from UK private companies

In recent years, regulators have exempted an increasing number of companies from the requirement to appoint auditors, yet little is known about role accounting profession in preparing and validating financial statements unaudited companies. this paper, we examine empirically factors associated with appointment reporting accountants. We then provide novel evidence on whether UK small private are less likely restate their annual accounts when they been prepared by external accountancy firm (i.e., a accountant). Based cross sectional analysis large sample companies, find that, accordance ‘confirmation hypothesis’, larger that voluntarily disclose more information accountant. also accountant significantly be restated than those without. This result pronounced for disclosing employing firm. Given dwindling opting audits, our findings contribute debates enhancing company quality.