| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 94 === Listed companies that had publicly released financial forecasts must announce the self-reported earnings and the achievement of financial forecasts within one month after the end of the fiscal year to make investors early understand the last year operations of the companies. However, self-reported earnings are complied by the management of a company, the errors in the application of accounting principles and earnings management would reduce the reliability of self-reported earning information and make investors downward value firms’ stock prices. Therefore, to avoid larger difference between self-reported earnings and audited earnings in the future, the management usually shops audit opinion or, even, change to the auditor who can accept their opinions. This study is aimed at examining the effect of the difference between self-reported earnings and audited earnings on auditor change.
The sample of this study are the listed companies ,on TSE or OTC , had released financial forecasts and self-reported earnings in any year from 1998 to 2003 and are with positive after-tax earnings (audited earnings). The empirical test is to see if more the difference between self-reported earnings and audited earnings make the possibility of auditor change in the next fiscal year larger. From the empirical results, this study finds that the larger the difference between self-reported earnings and audited earnings (the larger downward revision of self-reported earnings), more inclined to change auditors in the next fiscal year. This study also finds that larger the change rate of debt ratio and longer auditor tenure result significantly make auditors change in the next fiscal year. However, the change rate of company scale, the change rate of sales, the change rate of accruals, the change rate of the shares of the directors and supervisors, and the change of chairman or general manager, and the audit opinions are not obvious reasons that make the auditor change.
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