Do Critical Audit Matters Matter? An Analysis of Their Association With Earnings Management
Objective: To analyze the relationship between Critical Audit Matters (CAM) and earnings management practices among Brazilian companies. Method: This study's sample was composed of 96 companies listed in IBRX 100, data of which were collected from the Securities and Exchange Commission (CVM) and COMDINHEIRO database in 2016 and 2017, using descriptive statistics and panel data regression analysis.Results: The most predominant types of CAM were: Assets Recovery, Contingencies, and Recognition of Revenues, which together accounted for 58% and 66% of CAM reported in 2016 and 2017, respectively. A positive and significant association was found between the number of CAM and accruals and discretionary revenues while a negative and significant association was found between the number of CAM and earnings management proxy by operations through discretionary expenses. Contributions: These results have implications for the debate regarding this topic, especially, for the practices of accountants, auditors and regulators, as these findings present important insights regarding association between the disclosure of CAM and earnings management proxies by accruals and actual operations, showing the importance of disclosing CAM as red flags signaling the manipulation of accounting data
Year of publication: |
2020
|
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Authors: | Santos, Kleyverson |
Other Persons: | Guerra, Renan (contributor) ; Marques, Vagner (contributor) ; Maria Junior, Elizeu (contributor) |
Publisher: |
[2020]: [S.l.] : SSRN |
Subject: | Bilanzpolitik | Accounting policy | Wirtschaftsprüfung | Financial audit |
Saved in:
freely available
Extent: | 1 Online-Ressource (22 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Revista de Educação e Pesquisa em Contabilidade (Journal of Education and Research in Accounting), v. 14, n. 1, art. 4, p. 55-77, Jan./Mar. 2020 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 31, 2020 erstellt |
Classification: | M41 - Accounting ; M42 - Auditing ; M48 - Government Policy and Regulation |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012838150
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