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Do Auditors Communicate Financial Misstatement Risk In Audit Report? Evidence From Subsequent Accounting Restatements In China, Hau Yi Yeung
Do Auditors Communicate Financial Misstatement Risk In Audit Report? Evidence From Subsequent Accounting Restatements In China, Hau Yi Yeung
Lingnan Theses and Dissertations (MPhil & PhD)
Regulators worldwide are considering expanding current audit reporting model to include key audit matters (KAM). Proponents argue that current audit reports are standardized and uninformative to financial statement users. Auditors in current reporting regime can choose to add explanatory notes in audit reports, however, few current studies have investigated the information content of these explanatory notes. This thesis conducts a textual analysis of explanatory notes in auditor reports and examines the predictability of auditors’ explanatory notes consisting of both unqualified and qualified opinions in determining the incidence of subsequent restatements. I hand collect material accounting restatements disclosed by the public …