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Clients' strategic change and auditor behavior: Evidence from audit adjustments and audit fees

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成果类型:
期刊论文
作者:
Bin Wu;Anqi Li;Wen Zhang*
通讯作者:
Wen Zhang
作者机构:
[Bin Wu] School of Economics and Business Administration, Central China Normal University, 152 Luoyu Road, Hongshan District, Wuhan, Hubei Province 430079, China
School of Business, Renmin University of China, 59 Zhongguancun Street, Haidian District, Beijing 100872, China
College of Business, City University of Hong Kong, Kowloon Tong, Hong Kong Special Administrative Region
[Wen Zhang] School of Economics and Management, Beijing Information Science and Technology University, 55 Taihang Road, Changpin District, Beijing 102206, China
[Anqi Li] School of Business, Renmin University of China, 59 Zhongguancun Street, Haidian District, Beijing 100872, China<&wdkj&>College of Business, City University of Hong Kong, Kowloon Tong, Hong Kong Special Administrative Region
通讯机构:
[Wen Zhang] S
School of Economics and Management, Beijing Information Science and Technology University, 55 Taihang Road, Changpin District, Beijing 102206, China
语种:
英文
期刊:
Advances in Accounting
ISSN:
0882-6110
年:
2024
卷:
64
页码:
100721
基金类别:
This study was supported by the Fundamental Research Funds for the Central Universities (No. CCNU24XJ001) and the National Natural Science Foundation of China (No. 72172149).
机构署名:
本校为第一机构
院系归属:
经济与工商管理学院
摘要:
Using data on audit adjustments, this study examines the relation between Chinese listed companies' strategic change and their auditor's behavior. We find that levels of audit clients' strategic change are positively associated with the magnitude of audit adjustments and audit fees, suggesting that auditors exert greater effort, and propose larger audit adjustments, on these audits. We argue that during a client’ strategic change, auditors rely less on prior experience with the client, and increase their perceived risk of the audit. Further re...

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