Access the full text.
Sign up today, get DeepDyve free for 14 days.
R. Magee, M. Tseng (1990)
Audit Pricing and IndependenceThe Accounting Review
Nahum Melumad, Toshi Shibano (1994)
The Securities-And-Exchange-Commission And The Financial-Accounting-Standards-Board - Regulation Through Veto-Based DelegationJournal of Accounting Research, 32
J. Krishnan (1994)
Auditor switching and conservatismAccounting review: A quarterly journal of the American Accounting Association, 69
J.E. Butterworth, M. Gibbins, R.D. King (1982)
Research to Support Standard Setting in Financial Accounting: A Canadian Perspective
S. Choi, Debra Jeter (1992)
The effects of qualified audit opinions on earnings response coefficientsJournal of Accounting and Economics, 15
Michael Alles, Russell Lundholm (1993)
On the optimality of public signals in the presence of private informationAccounting review: A quarterly journal of the American Accounting Association, 68
Thomas Lys, R. Watts (1994)
Lawsuits Against AuditorsJournal of Accounting Research, 32
R. Dye, Robert Verrecchia (1995)
Discretion vs. Rules: Choices Among GAAPThe Accounting Review
T. Amer, Karl Hackenbrack, M. Nelson (1995)
Context-Dependence of Auditors' Interpretations of the SFAS No. 5 Probability Expressions*Contemporary Accounting Research, 12
(1994)
Strengthening the Professionalism of the Independent Auditor
L. Fields, Michael Wilkins (1991)
The Information Content of Withdrawn Audit Qualifications: New Evidence on the Value of "Subject-To" OpinionsAuditing-a Journal of Practice & Theory, 10
L. Deangelo (1981)
Auditor independence, ‘low balling’, and disclosure regulationJournal of Accounting and Economics, 3
(1993)
The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles in the Independent Auditor's Report, Statement of Auditing Standards
R. Dye (1991)
Informationally motivated auditor replacementJournal of Accounting and Economics, 14
When financial statements are audited, a client and auditor may disagree about an accounting disclosure. While the disclosure of such a disagreement may increase the information content of a statement it may also be socially undesirable in that it signals a difference in views about the state of the reporting enterprise. This in turn may increase agency costs and introduce uncertainty about the state of the firm. In this paper we focus on public policy implications concerning auditor-client disagreements and examine the ex ante probability that such cases will occur. We find that accounting standards that allow two accounting options may be optimal in reducing frequency of disagreements among auditors and between standard-setters and their constituencies, and possibly also between clients and their auditors. The New Zealand model of compliance with accounting standards may be preferable to that practiced in the US.
Review of Quantitative Finance and Accounting – Springer Journals
Published: Oct 6, 2004
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.