This paper extends the traditional view of audit failures related to the going-concern (GC) assumption to two circumstances scarcely analyzed in the audit literature: the earnings overstatement that characterizes firms without a going-concern uncertainty (GCU) in their audit reports and the...

We investigate the impact of audit quality on the quality of government in a large cross-section of countries. We assess government performance using measures of six dimensions of governance, namely, voice and accountability, political stability, government effectiveness, regulatory quality,...

This study provides descriptive evidence on the controversial trend adopted by many firms in recent years of reporting earnings figures on a "pro forma" basis. Pro forma earnings exclude normal income statement items that managers deem to be nonrecurring or nonrepresentative of ongoing...

We examine whether UK managers use the flexibility provided under the partial method for deferred taxes to measure unrecognized deferred taxes opportunistically. We first test whether firm-specific operational and opportunistic factors are associated with the level of unrecognized deferred...

This study provides descriptive evidence on the controversial trend adopted by many firms in recent years of reporting earnings figures on a "pro forma" basis. Pro forma earnings exclude normal income statement items that managers deem to be nonrecurring or nonrepresentative of ongoing...

This paper addresses the question whether adoption of IFRS-standards is associated with lower earnings management. Ball et al. (2003) argue that adopting high-quality standards might be a necessary condition for high quality information, but not necessarily a sufficient one. In Germany, a...

Accounting quality in Brazil is higher for companies with a Big N auditor if quality is identified by compliance with disclosure rules or by timeliness of loss recognition. This is in agreement with Holthausen's hypothesis that auditor choice allows companies to opt-out of an environment where...

We provide preliminary confirmation of Skinner's (1995) hypothesis that Canada's relatively principles-based GAAP yield higher accrual quality than the US's relatively rules-based GAAP. These results stem from a comparison of the Dechow-Dichev (2002) measure of accrual quality for cross-listed...

In the moment of China's new Standard for Asset Impairment change of no permission for the reversal of four items of impairment provisions, this paper studies that in the transitional years of 2005 and 2006, how loss and profit-turning listed companies choose their earnings manipulation...

This paper examines the implications for multinational firms of recent proposals to conform tax and financial reporting (i.e., book-tax conformity). Proponents of book-tax conformity argue that the current dual system in the U.S. allows firms to simultaneously manage their taxable income down...