Mandatory Financial Reporting Processes and Outcomes

In an extension to the mandatory financial reporting literature, we consider compliance and applicability as intermediate stages in the disclosure decision process, and investigate to what extent these measures explain any variance in the quantity of disclosure. We use financial instruments disclosures as our empirical context because of the level of complexity and diversity of the mandatory requirements. We find that neither applicability nor compliance show statistically significant association with disclosure quantity. By contrast we find that a firm's financial instruments management programme is an important determinant of both applicability and quantity. Finally, we demonstrate the economic consequences of applicability, compliance and quantity through their association with audit fees. For companies that use financial instruments management programmes to a greater extent, audit fees are higher. In contrast, the quantity of financial instruments disclosures appears to reduce audit fees.     

虚假财务报告的审计重点

虚假财务报告包括非故意错报或漏报的错误财务报告和故意不实反映的舞弊财务报告。错误主要包括:原始记录和会计数据的计算、抄写错误,对事实的疏忽和误解,对会计政策的误用。舞弊主要包括:伪造、变造记录或凭证,侵占资产,隐瞒或删除交易或事项,记录虚假的交易或事项,蓄意使用不当的会计政策。对虚假财务报告的审计,应抓住虚假财务报告可能出现问题的环节,重点审计。下面就舞弊的资产负债表、损益表、现金流量表以及财务报表附注的审计重点进行分析。 资产负债表的审计重点对虚假资产负债表的审计,应注重搜集资产负债表以外的经济活动资料,…     

基于案例推理的财务报告舞弊识别研究

上市公司财务报告舞弊对资本市场建设和投资者利益保护掣肘已久。以2003~2012年我国沪深 A 股财务报告舞弊公司及其配对公司为样本,依据“舞弊钻石”理论和现有文献提取舞弊识别指标,基于案例推理思想构建财务报告舞弊识别模型。研究发现,较之于非舞弊公司,舞弊公司通常面临更大的盈利压力和偿债压力,成长能力更弱,事务所变更现象更为普遍,被出具非标准审计意见的概率更高。基于仿兰氏距离的案例推理模型对测试集样本的识别总正确率为66.7%。     

Audit Committee Effectiveness and Financial Reporting Quality: Implications for Auditor Independence

Auditors participating in a survey identified oversight of financial reporting and the external audit process, and ensuring quality internal controls, as the most important functions of effective audit committees. Financial literacy or expertise, independence, and a strong commitment to perform the job effectively were noted as important attributes. The results also suggest that although audit committees have enough power to confront management on contentious issues, they are not very effective in helping to resolve financial reporting disputes. Management was identified as a key influence in affecting the nature, extent, and quality of communication between the auditor and the audit committee. Most auditors believe that it is not important for each member of the audit committee to be an expert, but it is important that they are financially literate.     

全球金融危机处置中的中国策略

全球金融危机是美国国内经济的失衡和特里芬困境作用的必然结果,反映了全球化对国际统一货币的需求与主权国家货币行使世界货币职能矛盾的不可调和性.因此,金融危机是美元滥发与美国国内经济承受力之间矛盾被迫调整的结果,因而危机爆发具有必然性.然而美国继续使用透支信用,发行国债,向市场注入流动性来治理危机,这无疑是饮鸠止渴.从这个角度看,国际金融体系的重构将不以美国意志为转移,中国必须要利用这场金融危机所造成的国际金融与经济秩序调整的契机,提高自身在国际金融中的地位及话语权.     

浅析上市公司财务欺诈的审计对策

关注财务欺诈预兆的信号 在审计过程中注册会计师应时刻保持警惕, 以察觉企业的财务欺诈在接受审计业务约定时,注册会计师既要关注企业内部组织情况和行业领域情况也要关注最新的财务欺诈手段.     

Conservative Reporting and the Incremental Effect of Mandatory Audit Firm Rotation Policy: A Comparative Analysis of Audit Partner Rotation vs Audit Firm Rotation in South Korea

In this paper, we take advantage of Korea's unique experiment with mandatory audit firm rotation (MAFR) and mandatory audit partner rotation (MAPR) to ascertain their influence on audit quality, proxied by conditional conservatism. Overall, we find that the implementation of MAFR did not have the desired effect. Firms that adopted MAFR demonstrate higher levels of conservatism in previous periods under MAPR (or compared to voluntary adopters). Furthermore, we find that audit tenure increases conservatism levels consistent with the auditor expertise hypothesis. However, whilst evidence suggests MAFR decreases audit quality on the whole, we find that firms that switch from non‐Big 4 to Big 4 auditors demonstrate higher conservatism because Big 4 auditors are more likely to demand conservative accounting practices, consistent with Big 4 audit firm knowledge superiority. Overall, the results suggest that MAFR's negative effect on audit quality can be mitigated by Big 4 auditor supervision.     

公司战略、大股东持股与财务欺诈

以2001-2015年我国A股上市公司为样本,考察企业公司战略定位对财务欺诈行为的影响,研究发现:公司战略对财务欺诈行为有显著影响,公司战略定位越激进,越可能导致财务欺诈行为的发生;经过稳健性测试后,结果依然成立.进一步研究发现:提高大股东持股比例,可以增强大股东对管理者的"监督效用",从而提升企业内部监督效率,进而抑制公司战略对财务欺诈行为的影响.     

The Impact of Mandatory International Financial Reporting Standards Adoption on Investment Efficiency: Standards,Enforcement, and Reporting Incentives

This paper investigates whether mandatory adoption of International Financial Reporting Standards (IFRS) is followed by a decline in firms’ suboptimal investments. On average, we find that the probability of under‐investment in capital expenditure declines for firms from 23 countries requiring mandatory adoption of IFRS relative to firms from countries that do not have such requirements; meanwhile the probability of over‐investment remains unchanged. However, this real effect becomes smaller when we control for concurrent changes to the enforcement of financial reporting along with the introduction of IFRS in some countries, suggesting that the switch in standards is only one of the drivers for the observed benefits. Moreover, we find that the reduction in suboptimal investments is driven by firms with high reporting incentives to provide transparent financial reports from countries where the existing legal and enforcement systems are strong. We further show that the real effect increases with the predicted changes in accounting comparability. Finally, we find that after mandatory IFRS adoption, capital investment becomes more value‐relevant, less sensitive to the availability of free cash flows, and more responsive to growth opportunities. Our findings provide new insights into the real effects of mandatory IFRS adoption.     

注册会计师在舞弊审计中的技术策略

在现代市场经济中，证券市场的舞弊行为可谓层出不穷，对证券市场及注册会计师行业均产生了巨大的冲击。注册会计师对上市公司会计报表错弊的揭示，是广大投资者，包括债权人、股东、以及所有利益相关者的基本要求。探究证券市场舞弊的成因，确立舞弊审计的技术策略，是遏制证券市场舞弊行为的有效举措，也可以此规范注册会计师对舞弊审计的技术措施。 证券市场舞弊的形成及其揭示舞弊是指为获得非法利益采用不法手段所实施的故意行为。在上市公司的信息披露中，一般表现为有目的地欺骗或故意谎报重大财务事实的不诚实行为。国外舞弊风…     

Non‐Audit Service Fees and Financial Reporting Quality: A Meta‐Analysis

Auditing as a corporate governance mechanism has attracted considerable research attention. Because of the information asymmetry between corporate managers and outside shareholders, auditors are hired to provide independent assurance that financial statements are prepared following generally accepted accounting principles. The credibility of such assurance depends on the independence, both in fact and in appearance, of the auditor. Over the years, however, the independence of auditors has come under increased scrutiny because of their joint provision of both audit and non‐audit services. A sizable literature on the impact of non‐audit fees on financial reporting quality has developed. The evidence from this literature, however, remains inconclusive. This paper provides a meta‐analysis of the available literature by assessing (a) the net effect of non‐audit fees on financial reporting quality, and (b) whether there is homogeneity in the financial reporting quality proxies used in the extant literature. Findings suggest that the level of client‐specific non‐audit fees is associated with reduced financial reporting quality. However, the underlying studies used to conduct this meta‐analysis are not homogenous.     

Effects of Increasing Enforcement on Financial Reporting Quality and Audit Quality

A widely held assumption in policy making and empirical research is that increasing the strength of public enforcement improves financial reporting quality and audit quality. This paper provides a more nuanced view. In a model with a manager who can manage earnings, a strategic auditor, and an enforcement institution, we show that enforcement and auditing are complements in a weak enforcement regime but can be substitutes in a strong regime. Although stronger enforcement always mitigates earnings management, the effects of different instruments of strengthening enforcement are ambiguous. We show that they can improve or impair financial reporting quality and audit quality, depending on production risk, accounting system characteristics, and the scope of auditing relative to enforcement.     

Overlapping Membership on Audit and Compensation Committees and Financial Reporting Quality

This paper examines whether the audit committee members of a board improve financial reporting quality if they are also on their organisation's compensation committee. Audit committees are responsible for overseeing the financial reporting process of organisations and have been urged to broaden their understanding of business risk and of the incentives provided by their firms’ executive compensation structures. Acknowledging the interrelationships among executive compensation, risk‐taking and financial reporting quality, members of audit and compensation committees have been advocating more information sharing between the two committees. Using archival data from a sample of Australian Stock Exchange listed companies, and discretionary accruals as a proxy for financial reporting quality, this study finds that firms with overlapping committees have better quality financial reporting than those without such an overlap. Our evidence for this is stronger in cases where managers tend to manage earnings upwards in order to meet or beat earnings benchmarks. We also find that the beneficial effect of the existence of overlapping committees is adversely affected by the equity holdings of directors with overlapping memberships.     

Consequences of Financial Reporting Failure for Outside Directors: Evidence from Accounting Restatements and Audit Committee Members

I use a sample of 409 companies that restated their earnings from 1997 to 2001 to examine penalties for outside directors, particularly audit committee members, when their companies experience accounting restatements. Penalties from lawsuits and Securities and Exchange Commission (SEC) actions are limited. However, directors experience significant labor market penalties. In the three years after the restatement, director turnover is 48% for firms that restate earnings downward, 33% for a performance‐matched sample, 28% for firms that restate upward, and only 18% for technical restatement firms. For firms that overstate earnings, the likelihood of director departure increases in restatement severity, particularly for audit committee directors. In addition, directors of these firms are no longer present in 25% of their positions on other boards. This loss is greater for audit committee members and for more severe restatements. A matched‐sample analysis confirms this result. Overall, the evidence is consistent with outside directors, especially audit committee members, bearing reputational costs for financial reporting failure.     

公司收入作假手段的识别及审计对策

公司粉饰经营业绩的作假手法一般包括虚增资产和收入、虚减负债和费用。其中虚增销售收入是公司业绩作假的主要手段之一,也是注册会计师审计时应关注的主要方面。本文旨在总结公司常见的收入作假手段、分析注册会计师识别收入作假的途径以及应采用的主要审计对策。 公司收入作     

Internal Audit Quality and Financial Reporting Quality: The Joint Importance of Independence and Competence

In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as a financial reporting monitor. Our tests support the hypothesis that the joint presence of competence and independence is a necessary antecedent to effective IAF financial reporting monitoring. In sum, our results show that, the answer to “what is the effect of internal audit competence (independence) on financial reporting quality?” is “it depends on the independence (competence) of the internal auditor.” Our study extends the understanding of IAF quality determinants in the realm of financial reporting as it relates to ongoing discussions by researchers, standard setters, regulators, and practitioners.