This thesis presents three essays on audit quality tied up by a common thread: the implication of closeness in auditor-client relationship on audit quality and beyond. In Chapter II, I investigate the implications of close auditor-client relationships arising as time passes on clients’ operating decisions. I find long auditor tenure constrains clients’ discretion in accrual reporting, which in turn prompts firms to resort to real activity management if they are under pressure to achieve earnings targets. For a given length of auditor tenure, the presence of auditor industry expertise does not affect the association between tenure and clients’ engagement in real activity management. These findings highlight an unintended consequence of long auditor tenure and therefore contribute to the on-going debate concerning the merits and shortcomings of mandatory audit firm rotation. In Chapter III and IV, we examine the implications of close auditor-client relationships arising from economic bonding on audit quality reflected from clients’ accrual reporting and auditors’ going-concern decisions. In Chapter III, we find a significantly positive association between fee dependence and abnormal accruals prior to the passage of the Sarbanes-Oxley Act (hereafter SOX), but not in the post-SOX period, suggesting that SOX has enhanced non Big-4’s ability to withstand client pressure arising from fee dependence. These results suggest strong economic bonding between auditors and clients may impair audit quality among smaller auditors, and tightening auditors’ external litigation exposures enhances small auditors’ abilities to withstand client pressure. In Chapter IV, we find that even for firms that are most targeted by SOX, auditors do not allow economic bonding to affect their going-concern decisions in either the pre- or the post-SOX period. These findings thus suggest potential litigation risks faced by auditors in the event of failures to warn the public about their clients’ severe financial distress prior to bankruptcy are high enough to deter auditors from compromising their independence in formulating going-concern decisions. In conclusion, audit quality is affected by closeness in the auditor-client relationship and regulatory intervene may be needed depending on specific setting in terms of auditor type and auditing decisions. / Accounting

An enquiry into the relevance and reliability of accounting information that is provided to natural shareholders in Australia. The findings provide evidence that the information needs of shareholders are not being met, and that the existing theory of auditor independence has not integrated the views of this large and significant group of shareholders.

An enquiry into the relevance and reliability of accounting information that is provided to natural shareholders in Australia. The findings provide evidence that the information needs of shareholders are not being met, and that the existing theory of auditor independence has not integrated the views of this large and significant group of shareholders.

Thesis (Ph. D.)--University of Missouri-Columbia, 1999. / Typescript. Vita. Includes bibliographical references (leaves 42-45). Also available on the Internet.

Thesis (Ph. D.)--University of Missouri-Columbia, 1999. / Typescript. Vita. Includes bibliographical references (leaves 42-45). Also available on the Internet.

160 f. Il. / Submitted by Suelen Reis (suelen_suzane@hotmail.com) on 2013-02-15T11:37:52Z No. of bitstreams: 1 Reis.pdf: 1858709 bytes, checksum: bdc05d82d15a17d5d6aecc5ad688643e (MD5) / Approved for entry into archive by Fatima Cleômenis Botelho Maria (botelho@ufba.br) on 2013-02-18T13:33:10Z (GMT) No. of bitstreams: 1 Reis.pdf: 1858709 bytes, checksum: bdc05d82d15a17d5d6aecc5ad688643e (MD5) / Made available in DSpace on 2013-02-18T13:33:11Z (GMT). No. of bitstreams: 1 Reis.pdf: 1858709 bytes, checksum: bdc05d82d15a17d5d6aecc5ad688643e (MD5) Previous issue date: 2009 / O rodízio de auditores independentes no Brasil foi instaurado por iniciativa do Banco Central do Brasil (BACEN) por ocasião dos escândalos corporativos que demonstraram grandes vulnerabilidades na emissão das demonstrações contábeis de instituições financeiras, sendo posteriormente adotado pela Comissão de Valores Mobiliários (CVM) para as empresas sociedades anônimas de capital aberto, ou seja, registradas na bolsa de valores do Brasil. O principal objetivo da implantação do rodízio de auditores independentes foi à preservação da independência e ética do auditor externo, e a conseqüente diminuição das fraudes e dos erros contábeis que estariam relacionados ao processo de execução da auditoria das demonstrações contábeis. A troca da empresa de auditoria sempre foi um assunto muito polêmico, pois além de afetar a relação comercial e profissional dos auditores com as empresas auditadas, bem como toda a estrutura de mercado das empresas de auditoria independente, questiona-se se ele é realmente efetivo na manutenção da independência e ética. A dissertação foi alicerçada nas normas brasileiras e internacionais de auditoria independente, na evolução histórica do conceito de rodízio de auditores independentes, na apreciação das pesquisas de mercado e acadêmica realizadas sobre o assunto em outros países, e também nas estruturas filosóficas que determinam os princípios de independência e ética que são correlacionados com a contabilidade e a auditoria. Além de todo o referencial teórico mencionado, foi elaborada uma base de dados com todas as empresas sociedades anônimas de capital aberto relacionadas na base de dados Economática nos exercícios compreendidos entre 1997 a 2007, excluindo as instituições financeiras, e foram obtidas as informações referentes aos auditores independentes no site da CVM. Tomando-se por base essas informações compiladas na base de dados foi rodada, com base na metodologia AWCA – Abnormal Working Capital Accruals, os efeitos do gerenciamento de resultados decorrentes da troca da empresa de auditoria, analisando-se, principalmente, o motivo da troca (rodízio obrigatório da CVM ou troca espontânea), classificação da empresa de auditoria em Big Four (`PwC, DTT, E&Y e KPMG), e o tempo de relacionamento da empresa de auditoria com a empresa auditada. A conclusão obtida pela dissertação foi de confirmar que com ou sem rodízio de auditores independentes os efeitos decorrentes do gerenciamento de resultado não apresentam diferença significativa na sua essência, não sendo, dessa forma, o rodízio de auditores independentes a forma de assegurar para o mercado de capitais a manutenção da independência do auditor externo na execução do seu trabalho, pois não se pode confirmar que essa prática de rodízio por si só minimiza os riscos associados a fraudes e erros contábeis quando da elaboração das demonstrações contábeis. Um dos tópicos que se verificou por essa pesquisa que atenua o gerenciamento de resultado das empresas, é a contratação de empresa de auditoria classificada como Big Four (PwC, DTT, E&Y e KPMG). Vale salientar que essas empresas de auditoria classificadas como as Big Four possuem práticas de rodízio de profissionais das equipes formalizadas em suas regras internas. / Salvador

This thesis is avout civil liability of auditors, to whom, for what and in which amount are auditors liable. Thesis deals with the effort which did European union about unification of the approach of its member states. Further chapters deals with geographical distribution of liability regimes and accounting scandals which led to auditors obligation to pay for harms.

The thesis: "the examination of the local government unit Borough Prague 3" is a brief description of the development of the audit profession in the Czech Republic, the definition of audit and audit functions, legislative adjustments of the audit and review of financial self -governing region. Then the analysis of the management review City of Prague 3, 2011, brief description of the status of this district within the public sector, for its financing and accounting processing system. At the same time described deficiencies identified in the review of the management district for the year 2011, including risks, recommendations for their elimination and evaluation of the adopted measures. An important part of the diploma thesis is the independent auditor's report on the outcome of the management review City of Prague 3, 2012 and recommendations for corrective action to identified deficiencies.

This research evaluates current home energy assessment tools and practices and investigates their applicability in terms of relevance supporting retrofit decision making in Southwest Virginia. Home energy assessments and audits are comprised of many different tools, strategies, and practices all with the same goal, to achieve accuracy in assessing performance as well as confidence in achieving energy savings from retrofit recommendations. Differing opinions, training, and standards in energy assessments have led to a reduced confidence and reliance on energy assessments, which can ultimately lead to poor retrofit decisions and undesired outcomes. This research undertook an investigation of current tools and practices as well as modeling studies to reveal insights into strengths and weaknesses, and to refine home energy assessments. The goal was to identify opportunities to increase confidence for stakeholders by analyzing energy assessments in terms of what strategies are most suitable to increase the accuracy of capturing different energy influence parameters, as well as to provide a basis for future research and development in this subject area. / Master of Science

Evidence gathered from major fraud investigations over the last decade has revealed that auditors in these cases failed to attend to fraud red flags within the substantive testing evidence. Research in psychology regarding inattentional blindness (IB) provides a theoretical framework for explaining why auditors may be prone to missing fraud red flags. This study examines the presence of IB during the performance of substantive testing and proposes two distinct interventions. Each intervention is predicted to improve auditor fraud detection. In a scenario involving fraudulent revenue transactions, findings show that a slight modification to the standard audit procedures significantly improves an auditor’s detection of red flags indicative of fraud. A second intervention involving the performance of a strategic reasoning task did not yield significant results. Overall, the results suggest that audit firms should consider making a cost effective adjustment to their standard audit program to improve fraud detection.