The Relation between CPA Expertise and Financial Statement Restatements

• Main Authors: Mei-Chen Kuo, 郭美珍
• Other Authors: 王泰昌
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/62054781198034912145

碩士 === 國立臺灣大學 === 會計學研究所 === 98 === The purpose of this study is to explore the relation between CPA expertise and the audit quality. The proxies for CPA expertise include their educational background and work experiences, such as the auditor tenure and the industry specialization. In addition, we measure the audit quality by attributes of financial statement restatements, including the restatement likelihood, the magnitude of asset and stockholders’ equity restated, and the initiators of restatements. The empirical results reveal that both restatement likelihood and magnitude are related to CPAs’ educational backgrounds and the interaction of their educational backgrounds and the work experiences. As to the influence of educational background on restatements, the CPA with foreign education has a higher probability to restate statements; however, as tenure increases, the restatement likelihood of the CPA with foreign education significantly decreases. Besides, as tenure increases, the restatement likelihood of the CPA graduating from EMBA program will significantly decrease as well. On the other hand, the magnitude of assets restated by the CPA majoring in accounting is significantly lower; however, as tenure increases, the magnitude of assets restated by the CPA majoring accounting increases.