Individual Auditor Conservatism After CSRC Sanctions
This study examines whether sanctions imposed by the China Securities Regulatory Commission (CSRC) against individual auditors result in greater auditor conservatism. Using a difference-in-differences research design, we find that clients of sanctioned individual auditors have lower discretionary ac...
| Authors: | ; ; |
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| Tipo de documento: | Recurso Electrónico Artigo |
| Idioma: | Inglês |
| Verificar disponibilidade: | HBZ Gateway |
| Journals Online & Print: | Carregar...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Publicado em: |
Springer Science + Business Media B. V
2016
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| Em: |
Journal of business ethics
Ano: 2016, Volume: 136, Número: 1, Páginas: 133-146 |
| Outras palavras-chave: | B
Regulatory governance
B Auditor conservatism B Sanction B Auditing ethics |
| Acesso em linha: |
Volltext (JSTOR) Volltext (lizenzpflichtig) |
| Resumo: | This study examines whether sanctions imposed by the China Securities Regulatory Commission (CSRC) against individual auditors result in greater auditor conservatism. Using a difference-in-differences research design, we find that clients of sanctioned individual auditors have lower discretionary accruals in the post-sanction period than in the pre-sanction period when compared to a matched control group of clients audited by individual auditors who were not sanctioned. Our findings suggest that sanctions imposed by the CSRC on individual auditors can lead to improvements in audit quality by increasing the conservatism of the sanctioned auditors. That is, individual auditors are more likely to resist their clients’ income-increasing accounting manipulations after being sanctioned by the CSRC. |
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| ISSN: | 1573-0697 |
| Obras secundárias: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-014-2514-z |