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We examine the unintended consequences of the 2005 increase from $500 million to $1 billion in the asset threshold for the Federal Deposit Insurance Corporation Improvement Act (FDICIA) internal control reporting requirements. We focus on a test sample of banks that increased their total assets...
Persistent link: https://www.econbiz.de/10011065750
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991 was designed, among other things, to introduce risk-based deposit insurance, increase capital requirements, and improve banks’ internal controls. Of particular interest in this study are the requirements for annual...
Persistent link: https://www.econbiz.de/10010595299
Using an international sample of firms from 31 countries, we study the relation between auditor quality and corporate tax aggressiveness. Using an indicator variable for tax aggressiveness when the firm's corporate tax avoidance measure is within the top quintile of each country-industry...
Persistent link: https://www.econbiz.de/10012970287
Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4-non-Big 4 auditor pair (BS) are more likely to...
Persistent link: https://www.econbiz.de/10012904029
auditor’s report that provides details on audit procedures, risks of material misstatement (RMMs), and materiality thresholds …
Persistent link: https://www.econbiz.de/10013226960
Using proprietary information about Chinese audit firms’ Professional Risk Fund (PRF) and Professional Indemnity Insurance (PII) and their publicly traded clients’ audit adjustments, we examine whether and how audit firms’ PRF and PII relate to audit adjustments. We find that audit...
Persistent link: https://www.econbiz.de/10013235804
that provides details on audit procedures, main risks of material misstatement (RMMs), and materiality thresholds. We …
Persistent link: https://www.econbiz.de/10012898738
We examine whether Big 4 auditors and non-Big 4 auditors maintain similar or different levels of financial reporting quality for private firms. DeAngelo (1981) suggests that litigation and reputation considerations incentivize Big 4 auditors to deliver higher audit quality than non-Big 4...
Persistent link: https://www.econbiz.de/10012900194
In 2011, the largest banks were designated as Global Systemically Important Banks (GSIBs) by the Financial Stability Board. While these banks face closer supervision and additional constraints, they also benefit from an implicit guarantee from their governments. The changed environment for these...
Persistent link: https://www.econbiz.de/10014362206
We examine the relation between auditor reputation and earnings management in banks using a sample of banks from 29 countries. In particular, we examine the implications of two aspects of auditor reputation, auditor type and auditor industry specialization, for earnings management in banks. We...
Persistent link: https://www.econbiz.de/10013039074