Audit Firm Switch And Earnings Quality

• Main Authors: Pin-Sheng Zhao, 趙品盛
• Other Authors: Ruei-Dsng Jhang
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/87436917932923833971

碩士 === 國立中興大學 === 會計學研究所 === 105 === Using the absolute value of discretionary accruals as the proxy of earnings quality, this studyinvestigates the association between earnings quality and auditor switch. The study further examines how different types of companies that had auditor switch affects their earnings quality.Empirical data of listed and OTC companies were gathered from the TEJ data bank in 2002-2015. Empirical results indicate that earnings quality of the company is lower when there was an auditor switch. The earnings quality of the company which had only oneauditorswitched is higher than that of the company that had two auditors switched simultaneously in the same firm. Besides, the earnings quality of the company which had auditor switched in the firm is higher than that of the company that switched the audit firm. Moreover, in the sample of auditor switch, the study discovers that older companies have better earnings quality than younger companies. In the sample of audit firm switch, the study finds that bigger-sized companies have better earnings quality than smaller-sized companies. However, anadditional test that used real earnings management as the proxy of earnings quality does not produce consistent results. Yet, results of the study provide more rooms for discussion especially for the earnings management methods adopted by companies.