In this paper, we identify instances in which the auditor-client relationship has been terminated (i.e., the auditor resigns or the client dismisses the auditor) but the auditor continues to complete a subsequent quarterly review. Using discretionary accruals and earnings benchmark tests to proxy for the extent of earnings management, we contrast earnings management behavior during these “lame ...

We extend the Barth, Cram, and Nelson (2001) model with disaggregated accruals by investigating whether cash flow components (core and non-core cash flows) improve cash flow predictability. BCN investigate the role of accrual components in predicting future cash flows while this study extends their study by investigating the role of cash flow components. We propose a cash flow prediction model ...

Abstract Motivated by diverging results from the literature, we investigate whether investments in information technology (IT) help banks to assess their loan portfolio. More specifically, focus on consequences of accumulated expenses for data processing banks’ ability estimate loss accruals. We further test differences when borrowers get hit economic trouble COVID-19 pandemic. Using a sample U...

We have estimated the impact of some characteristics auditors and audited companies on audit quality for Romanian listed firms (943 observations 2007–2019 period), using as a proxy level discretionary accruals, measured following Jones (1991) model, accruals quality, through Dechow Dichey (2002) model. These dependent variables been related to that reflect both firm (for example, Big 4 membersh...

We examine indicators of audit quality (as measured by abnormal accruals, the likelihood of reporting a profit and the likelihood of issuing modified audit opinions) for a sample of companies from 56 countries with non-US auditors during 2002-2011. For US-listed companies with non-US auditors, we find the audit quality to be higher after the non-US auditor is PCAOB-inspected. Further, in a samp...

The debate on audit quality still continues due to different results and arguments tenure, firm reputation quality. This study provides empirical evidence the differentiation of by considering tenure reputation. Using data from IDX manufacturing companies in 2019 2020, researcher examines difference quality, measured discretionary accruals, terms also 247 that are analyzed using Mann-Whitney te...

Este trabalho analisa o efeito da tenure firma e sócio de auditoria no gerenciamento resultados por accruals atividades operacionais reais das empresas abertas do mercado brasileiro. Compuseram a amostra 147 empresas, totalizando 1.138 observações para período 2011-2019. O utiliza modelos discricionários que constam nos trabalhos Dechow, Sloan Sweeny (1995) Kothari Watts (1998), respectivamente...

The purpose of the study was to establish effect financing cash flow on stock return and test moderating discretionary accruals relationship between return. Panel data collected from 29 listed non-financial firms at NSE for 12 years 2007-2019. Fixed hierarchical regression analysis showed that had a positive significant while negatively moderate flows returns. concludes improves return, however...