Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies
Questions relating to whether audit adjustments reduce bias in financial reporting are addressed by an analysis of 9 data sets of audit-related adjustments from more than 1500 audits across 16 audit years. Summary statistics are tabulated by direction of effect on earnings, by selected accounts, and...
Gespeichert in:
| Veröffentlicht in: | Auditing : a journal of practice and theory 1994-04, Vol.13 (1), p.149 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | |
|---|---|
| container_issue | 1 |
| container_start_page | 149 |
| container_title | Auditing : a journal of practice and theory |
| container_volume | 13 |
| creator | Kinney, William R Martin, Roger D |
| description | Questions relating to whether audit adjustments reduce bias in financial reporting are addressed by an analysis of 9 data sets of audit-related adjustments from more than 1500 audits across 16 audit years. Summary statistics are tabulated by direction of effect on earnings, by selected accounts, and by magnitude. Overall, audit-related adjustments show an overwhelmingly negative effect on preaudit net earnings and net assets. The average aggregate adjustment reduces earnings and assets by 2 times-8 times the minimum amount that would materially misstate the financial statements. Thus, the year-end audit is seen as directly reducing positive bias in preaudit net earnings and net assets as well as improving the precision of measurement. This implies that, other things being equal, if auditing had not been applied, then the financial reports of these firms would have tended to show materially inflated earnings and assets. |
| format | Article |
| fullrecord | <record><control><sourceid>proquest</sourceid><recordid>TN_cdi_proquest_journals_216737612</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>7585298</sourcerecordid><originalsourceid>FETCH-LOGICAL-p139t-5550e67c9659bf2fe9742115dbb5c975589495d67223c93038eef9832e33ecfe3</originalsourceid><addsrcrecordid>eNqFT0lLAzEYDaLgWP0PwXsgS7OdpNQVCl70askkXyRDzYyTjP59I_Xu6fF4G-8EdUxKQ7S17BR1lGtDqDD0HF2UMlBKtTK6Q2-3IxTslpBqyu94hrB4wH1yBaeMY8ou--QOTZjG-ddygzeNfCX4xmM8BskMB1chYBeGpdQPyBWX2hQol-gsukOBqz9codf7u5ftI9k9PzxtNzsyMWErkVJSUNpbJW0feQSr15wxGfpeeqvbD7u2MijNufBWtB8A0RrBQQjwEcQKXR97p3n8XKDU_TAuc26Te86UFlox_q9JmFb_A2WlXCo</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>216733822</pqid></control><display><type>article</type><title>Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies</title><source>EBSCOhost Business Source Complete</source><creator>Kinney, William R ; Martin, Roger D</creator><creatorcontrib>Kinney, William R ; Martin, Roger D</creatorcontrib><description>Questions relating to whether audit adjustments reduce bias in financial reporting are addressed by an analysis of 9 data sets of audit-related adjustments from more than 1500 audits across 16 audit years. Summary statistics are tabulated by direction of effect on earnings, by selected accounts, and by magnitude. Overall, audit-related adjustments show an overwhelmingly negative effect on preaudit net earnings and net assets. The average aggregate adjustment reduces earnings and assets by 2 times-8 times the minimum amount that would materially misstate the financial statements. Thus, the year-end audit is seen as directly reducing positive bias in preaudit net earnings and net assets as well as improving the precision of measurement. This implies that, other things being equal, if auditing had not been applied, then the financial reports of these firms would have tended to show materially inflated earnings and assets.</description><identifier>ISSN: 0278-0380</identifier><identifier>EISSN: 1558-7991</identifier><language>eng</language><publisher>Sarasota: American Accounting Association</publisher><subject>Accounting firms ; Annual reports ; Audited financial statements ; Auditing ; Auditing standards ; Auditors ; Audits ; Bias ; Datasets ; Financial reporting ; Impacts ; Statistical analysis ; Studies</subject><ispartof>Auditing : a journal of practice and theory, 1994-04, Vol.13 (1), p.149</ispartof><rights>Copyright American Accounting Association Spring 1994</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,780,784</link.rule.ids></links><search><creatorcontrib>Kinney, William R</creatorcontrib><creatorcontrib>Martin, Roger D</creatorcontrib><title>Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies</title><title>Auditing : a journal of practice and theory</title><description>Questions relating to whether audit adjustments reduce bias in financial reporting are addressed by an analysis of 9 data sets of audit-related adjustments from more than 1500 audits across 16 audit years. Summary statistics are tabulated by direction of effect on earnings, by selected accounts, and by magnitude. Overall, audit-related adjustments show an overwhelmingly negative effect on preaudit net earnings and net assets. The average aggregate adjustment reduces earnings and assets by 2 times-8 times the minimum amount that would materially misstate the financial statements. Thus, the year-end audit is seen as directly reducing positive bias in preaudit net earnings and net assets as well as improving the precision of measurement. This implies that, other things being equal, if auditing had not been applied, then the financial reports of these firms would have tended to show materially inflated earnings and assets.</description><subject>Accounting firms</subject><subject>Annual reports</subject><subject>Audited financial statements</subject><subject>Auditing</subject><subject>Auditing standards</subject><subject>Auditors</subject><subject>Audits</subject><subject>Bias</subject><subject>Datasets</subject><subject>Financial reporting</subject><subject>Impacts</subject><subject>Statistical analysis</subject><subject>Studies</subject><issn>0278-0380</issn><issn>1558-7991</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1994</creationdate><recordtype>article</recordtype><sourceid>8G5</sourceid><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>AZQEC</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><sourceid>GNUQQ</sourceid><sourceid>GUQSH</sourceid><sourceid>M2O</sourceid><recordid>eNqFT0lLAzEYDaLgWP0PwXsgS7OdpNQVCl70askkXyRDzYyTjP59I_Xu6fF4G-8EdUxKQ7S17BR1lGtDqDD0HF2UMlBKtTK6Q2-3IxTslpBqyu94hrB4wH1yBaeMY8ou--QOTZjG-ddygzeNfCX4xmM8BskMB1chYBeGpdQPyBWX2hQol-gsukOBqz9codf7u5ftI9k9PzxtNzsyMWErkVJSUNpbJW0feQSr15wxGfpeeqvbD7u2MijNufBWtB8A0RrBQQjwEcQKXR97p3n8XKDU_TAuc26Te86UFlox_q9JmFb_A2WlXCo</recordid><startdate>19940401</startdate><enddate>19940401</enddate><creator>Kinney, William R</creator><creator>Martin, Roger D</creator><general>American Accounting Association</general><scope>0U~</scope><scope>1-H</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7X1</scope><scope>7XB</scope><scope>87Z</scope><scope>88C</scope><scope>8A9</scope><scope>8AO</scope><scope>8FI</scope><scope>8FJ</scope><scope>8FK</scope><scope>8FL</scope><scope>8G5</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FRAZJ</scope><scope>FRNLG</scope><scope>FYUFA</scope><scope>F~G</scope><scope>GHDGH</scope><scope>GNUQQ</scope><scope>GUQSH</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>M0T</scope><scope>M2O</scope><scope>MBDVC</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope><scope>S0X</scope></search><sort><creationdate>19940401</creationdate><title>Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies</title><author>Kinney, William R ; Martin, Roger D</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-p139t-5550e67c9659bf2fe9742115dbb5c975589495d67223c93038eef9832e33ecfe3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1994</creationdate><topic>Accounting firms</topic><topic>Annual reports</topic><topic>Audited financial statements</topic><topic>Auditing</topic><topic>Auditing standards</topic><topic>Auditors</topic><topic>Audits</topic><topic>Bias</topic><topic>Datasets</topic><topic>Financial reporting</topic><topic>Impacts</topic><topic>Statistical analysis</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Kinney, William R</creatorcontrib><creatorcontrib>Martin, Roger D</creatorcontrib><collection>Global News & ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ProQuest Central (Corporate)</collection><collection>Access via ABI/INFORM (ProQuest)</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>Accounting & Tax Database</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>Healthcare Administration Database (Alumni)</collection><collection>Accounting & Tax Database (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>Hospital Premium Collection</collection><collection>Hospital Premium Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>Research Library (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Accounting, Tax & Banking Collection</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Accounting, Tax & Banking Collection (Alumni)</collection><collection>Business Premium Collection (Alumni)</collection><collection>Health Research Premium Collection</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>Health Research Premium Collection (Alumni)</collection><collection>ProQuest Central Student</collection><collection>Research Library Prep</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM Global</collection><collection>Healthcare Administration Database</collection><collection>Research Library</collection><collection>Research Library (Corporate)</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><collection>SIRS Editorial</collection><jtitle>Auditing : a journal of practice and theory</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Kinney, William R</au><au>Martin, Roger D</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies</atitle><jtitle>Auditing : a journal of practice and theory</jtitle><date>1994-04-01</date><risdate>1994</risdate><volume>13</volume><issue>1</issue><spage>149</spage><pages>149-</pages><issn>0278-0380</issn><eissn>1558-7991</eissn><abstract>Questions relating to whether audit adjustments reduce bias in financial reporting are addressed by an analysis of 9 data sets of audit-related adjustments from more than 1500 audits across 16 audit years. Summary statistics are tabulated by direction of effect on earnings, by selected accounts, and by magnitude. Overall, audit-related adjustments show an overwhelmingly negative effect on preaudit net earnings and net assets. The average aggregate adjustment reduces earnings and assets by 2 times-8 times the minimum amount that would materially misstate the financial statements. Thus, the year-end audit is seen as directly reducing positive bias in preaudit net earnings and net assets as well as improving the precision of measurement. This implies that, other things being equal, if auditing had not been applied, then the financial reports of these firms would have tended to show materially inflated earnings and assets.</abstract><cop>Sarasota</cop><pub>American Accounting Association</pub></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0278-0380 |
| ispartof | Auditing : a journal of practice and theory, 1994-04, Vol.13 (1), p.149 |
| issn | 0278-0380 1558-7991 |
| language | eng |
| recordid | cdi_proquest_journals_216737612 |
| source | EBSCOhost Business Source Complete |
| subjects | Accounting firms Annual reports Audited financial statements Auditing Auditing standards Auditors Audits Bias Datasets Financial reporting Impacts Statistical analysis Studies |
| title | Does auditing reduce bias in financial reporting? A review of audit-related adjustment studies |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-24T17%3A36%3A40IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Does%20auditing%20reduce%20bias%20in%20financial%20reporting?%20A%20review%20of%20audit-related%20adjustment%20studies&rft.jtitle=Auditing%20:%20a%20journal%20of%20practice%20and%20theory&rft.au=Kinney,%20William%20R&rft.date=1994-04-01&rft.volume=13&rft.issue=1&rft.spage=149&rft.pages=149-&rft.issn=0278-0380&rft.eissn=1558-7991&rft_id=info:doi/&rft_dat=%3Cproquest%3E7585298%3C/proquest%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=216733822&rft_id=info:pmid/&rfr_iscdi=true |