The aim of manuscript is to analyze and identify determinants of honest accounting errors leading to financial … restatements based on data from SEC database and from annual reports. Reason for this study is that accounting errors are expensive … price. Most of authors focus on prediction of accounting frauds and financial restatements remain in the background of …

In recent years, the Chinese government and the public accounting profession have advocated the audit practitioners …’ use of professional liability insurance (PLI). As a tool to divert audit firms’ business risk, PLI contracts could … decrease auditors’ diligence in conducting audits, which might harm audit quality. Insurance companies might perceive the …