A Study of the Relationship between Auditors and Accounting Conservatism: Theory and Practice
碩士 === 國立成功大學 === 會計學系碩博士班 === 97 === In this study I examine the relationship between auditors of CPA firms in Taiwan and conservatism in financial reporting. The first part I investigate the influence of industry specialist on accounting conservatism. And the second part I divide the significant e...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2009
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| Online Access: | http://ndltd.ncl.edu.tw/handle/00587225696209282130 |
| Summary: | 碩士 === 國立成功大學 === 會計學系碩博士班 === 97 === In this study I examine the relationship between auditors of CPA firms in Taiwan and conservatism in financial reporting. The first part I investigate the influence of industry specialist on accounting conservatism. And the second part I divide the significant economic events of Asian financial crisis and Rebar fraud to compare the difference of the conservatism in financial reporting.
This research uses both auditor’s market share in an industry and the share of a particular industry’s clients in the auditor’s portfolio of all industry clients as proxies for industry specialist. I use a large sample of clients of Taiwan Big 4 auditors in 2003 to 2007 and examine whether clients of auditors’industry specialization are more conservative. In addition, due to the increasing legal liability and litigation risk, I expect that financial reporting would become more conservative after Asian financial crisis and Rebar fraud. Therefore, I use the sample during Asian financial crisis (1995-2000) and Rebar fraud (2005-2008) periods to compare the difference of the conservatism of clients of auditors.
Empirical results indicate that (1) The clients of specialist auditors are more conservative in financial reporting than the those of nonspecialist auditors. (2) The financial reporting becomes more conservative after Asian financial crisis for full samples、samples of clients of Big5 auditors and samples of clients of non-Big5 auditors. (3) The financial reporting becomes more conservative after Rebar fraud for full samples、samples of clients of Big4 auditors and samples of clients of non-Big4 auditors.
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