Audit Tenure, Industry Specialization, and Firm Site Affect on Financial Statements

I will use the restatement as a dependent variable. Here, RESTATE is coded as 1 for each company in that year and the company recalculates its financial situation. Otherwise it is 0. The term of office of the auditor is one of my experimental variables. This variable is measured using the natural log of the year the audit company audited that customer. Using the audit data of the COMPUSTAT database, we will use the holding period to determine the number of years the auditor worked with the client from the original published financial statements through years prior to and after the restatement of the financial restitution.

In addition to accounting, the emergence of smart audits will facilitate financial audits. Auditing the financial statements of today's companies is a long and painful process. Instead of accessing the public database of the company to be audited, the auditing company accesses upstream of office processing. Using the requesting network's shared ledger, you can audit transactions in real time using intelligent algorithms. This completely changed the way we audit today. The emergence of interaction between objects, machines, and artificial intelligence is an exciting evolution in the coming years. Requesting a network provides a clear and powerful framework for the Internet 's Internet. Provide a payment framework for processing prepayment terms (postpay fee, advance payment, tax).

In most developed countries, large auditing firms provide professional services to provide accounting compliance services to audit and non-audit customers. Accounting compliance is a good term for preparing financial statements and other administrative staff and the audit corporation can provide it in parallel with the auditing practice without violating the requirements of independence under this manual I can do it. Indeed, as most large companies are seeing, the customs that financial statements are drafted by a single team, outsourced normally (of course, cheaper) and then adopted by management before the audit will increase It is. . - Off

Silver: Responding to proposals made by the Accounting Committee that does not allow the auditor to prepare financial statements

Prior to submitting to the Board of Directors, we discuss and discuss our company's annual audited financial statements with management and independent certified public accountants, including disclosure of "Management Discussion and Analysis of Financial Condition and Results of Operations". . The Committee shall consider the matters conveyed from the independent Certified Public Accountants Office to the Committee in accordance with the auditing standards of PCAOB. The Committee will notify the Board of Directors whether the audited financial statements should be included in the Company's Form 10-K.