Evulation of Audit Tenure, Industry Specialization, and Firm Size Affects Financial Restatements

Unlike previous research, my research does not include earnings per share and asset profit margin. I think that both of these variables measure the profitability of the company and the ability to generate cash. These two metrics make it possible for me to show if my results are functioning well for the company's financial statements and whether they have not been modified based on experimental variables. My findings believe that it shows empirical evidence that longer auditor 's term of office and industry specialization has a negative correlation with low audit quality.

This paper examines important important documents. These include audits, terms of office of the auditing firm, size of the auditing company, fraudulent financial reporting, and (i) relationship between the tenure of the auditing company and fraudulent financial reporting and (ii) Includes relationship with financial affairs. Past research results report was reviewed. Furthermore, during the audit period, we discussed with the research supporting facts and past problems on the quality of the audit corporation and the issues of the mandatory audit corporation. In the study of scholars and scholars of past research companies, short and long-term audit companies were further discussed. As with the second variable in this survey, a detailed explanation of the company size was mainly explained, mainly for the four major companies and companies other than the four companies. Finally, it also explains the review of fraudulent financial reports.

A study conducted by Sinason et al. (2001) The conclusion is that the length of the audit period was positively influenced by the type of auditing firm, which means that smaller auditing firms usually have a shorter term than their bigger counterparts. Another finding based on previous surveys is that to maintain existing customers while maintaining high degree of independence and objectivity, SMEs need long-term difficulties due to intensified competition and size mismatch That is to face it. The term of office between the two types of auditing firms may impair independence. Based on past cases, it is suggested to make the scale of the auditing corporation coincide with the size of the audited person, and if it does not match the size of the large audit subject audited by the small scale audit corporation, audit work May be canceled. Hudaib and Cooke (2005) prove this.