Long-Term Impact of Economic Conditions on Auditors' Judgment
We find that economic conditions at the time an auditor enters the labor market have a long-term impact on her judgment and decision making. Specifically, engagement partners who started their career during economic downturns issue audit adjustments more frequently. For the subsample of company-year...
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| Veröffentlicht in: | The Accounting review 2018-11, Vol.93 (6), p.203-229 |
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| container_title | The Accounting review |
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| creator | He, Xianjie Kothari, S. P. Xiao, Tusheng Zuo, Luo |
| description | We find that economic conditions at the time an auditor enters the labor market have a long-term impact on her judgment and decision making. Specifically, engagement partners who started their career during economic downturns issue audit adjustments more frequently. For the subsample of company-years with no audit adjustments, downturn auditors are more likely to issue a modified audit opinion. In addition, companies audited by downturn auditors are less likely to violate financial reporting and disclosure regulations. Together, our findings suggest that the early career stage is a critical formative period for auditors. |
| doi_str_mv | 10.2308/accr-52009 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0001-4826 |
| ispartof | The Accounting review, 2018-11, Vol.93 (6), p.203-229 |
| issn | 0001-4826 1558-7967 |
| language | eng |
| recordid | cdi_proquest_journals_2169631729 |
| source | PAIS Index; Business Source Complete; JSTOR |
| subjects | Accounting Adjustment Auditing Auditors Auditors opinions Audits Career stage Careers Companies Court decisions Decision making Disclosure Economic conditions Financial reporting Labor market Long term Regulation |
| title | Long-Term Impact of Economic Conditions on Auditors' Judgment |
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