1 When fair value cannot be measured by reference to matters that are directly observable, and if the measure represents little more than the measurer's state of mind, neither the measurement nor the measurement method are verifiable. In those circumstances, the independent auditor has a scope limitation and should not express an unqualified opinion on the financial statements that are material...

The findings of theoretical investigations indicate that short-term auditor tenures may contribute to further audit report lags (ARLs). On the other hand, auditor industry expertise represents one of the determinant factors contributing to audit quality, which has been widely studied in numerous researches. Indeed, the better the quality of audit, the less delayed would be the audit report. As ...

This study examines auditor switching using discriminant analysis and logistic regression. These two statistical techniques have been employed to show both whether auditor switching can be forecasted and which method better fits the data for companies listed on the Athens Stock Exchange. Using logistic analysis, auditor switching can be forecasted with prediction accuracy which exceeds 92.0 per...

The selection of a proper auditor is driven by several factors. Here, we use three data mining classification techniques to predict the auditor choice. The methods used are Decision Trees, Neural Networks and Support Vector Machines. The developed models are compared in term of their performances. The wrapper feature selection technique is used for the Decision Tree model. Two models reveal tha...

In this paper, we present a case study that illustrates the utility of pattern tableau discovery for data quality analysis. Given a usersupplied integrity constraint, such as a boolean predicate expected to be satisfied by every tuple, a functional dependency, or an inclusion dependency, a pattern tableau is a concise summary of subsets of the data that satisfy or fail the constraint. We descri...

The purpose of this study was to examine the potential for fraudulent financial reporting using fraud hexagon theory factors such as stimulus (financial target, stability, and external pressure), capability (change in director), collusion (total board commissioners who have multiple positions), opportunity (ineffective monitoring), rationalization (auditor switching), arrogance (frequency numbe...

In the European Esprit project VIVA (Visual Identity Verification Auditor) a real-time digital watermarking system for broadcast monitoring has been investigated and implemented. On top of the usual requirements for watermarks, the VIVA watermarking system has to satisfy an additional number of constraints. One of the most important constraints in a broadcast environment is the robustness of th...

We examine whether firms that share an auditor with at least one of their major customers are less likely to make accounting restatements compared to firms that do not have such links with their customers. Based on a sample of 4,808 firm-year observations during the period over 20002009, we find evidence supporting this prediction. We also show that this common auditor effect is mainly driven b...

Auditor Independence, Dismissal Threats, and the Market Reaction to Auditor Switches Author(s): Siew Hong Teoh Reviewed work(s): Source: Journal of Accounting Research, Vol. 30, No. 1 (Spring, 1992), pp. 1-23 Published by: Wiley-Blackwell on behalf of Accounting Research Center, Booth School of Business, University of Chicago Stable URL: http://www.jstor.org/stable/2491089 . Accessed: 17/08/201...