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...

Financial statement fraud is the type of that has most detrimental impact. This due to importance information contained in financial statements themselves for stakeholders and shareholders. Fraud must be detected prevented from occurring a company. The pentagon theory explains elements cause through five elements, namely pressure, opportunity, rationalization, ability or potential arrogance. st...

The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor’s main objective is to serve the ...

This research investigates how political connections and accounting irregularities affect the auditor appointment decision in Indonesian state-owned enterprises. considers choice switching decisions as its dependent variables. Political connection is calculated a percentage of firm's board directors commissioners with connections. Accounting are Beneish M-Score. Employing 235 firm-year observat...

This paper examines the mechanics of intertemporal information provision in dynastic governments. It has been suggested that “horizontal accountability,” i.e., a system of governance where cross-checking capabilities lie outside the executive branch, can ensure credible information transmission. The results here suggest a cautious approach to that view. Government is modelled as a dynastic sequ...

With the invention of cloud, the days of keeping all the documents on the computer’s hardware are gradually coming to an end. Today, people outsource their data at Cloud Service Provider (CSP)[1] who offers huge storage space at low cost. But as the data goes on cloud the user loses his control over the data and seeks for data security. Hence an efficient and effective method is needed to ensur...

.•\bstract—Theoretical research suggests that large auditors have more incentive to issue accurate reports compared to small auditors (DeAngelo. 1981; Dye, 1993). Controiling for the client characteristics of large and small auditors, this paper shows that large auditors issue reports that are more accurate and more informative signals of financial distress. These findings are consistent with t...