2020年6月16日学术报告通知

发布时间:2020-06-15

嘉宾简介:

Dr.  Xie is an associate professor of accounting at Kentucky University. He received his Ph.D. from the University of Iowa. Dr. Xie’s research focuses primarily on issues in corporate governmence and capital market. Dr. Xie has published extensively in top accounting  journals, including Contemporary Accounting Research, Accounting Review, and Review of Accounting Studies. He is currently conducting research on TMT and audit.

内容提要:

We examine factors that affect the timeliness of misstatement discovery at the  individual audit partner level using data from Taiwan that disclose both audit firm names and audit  partner names. Employing the duration of a misstatement as an inverse proxy for the timeliness of  misstatement discovery, we replicate Singer and Zhang (2018) that longer audit firm tenure is  associated with less timely discovery of misstatements using Taiwan data. However, when we  include leader audit partner tenure as an additional explanatory variable, the coefficient on firm tenure becomes insignificant and that on partner tenure is significantly positive, indicating that  longer partner tenure leads to less timely discovery of misstatements but audit firm tenure has no  bearing on the timeliness of misstatement discovery. In addition, we find that audit partners who  are an industry expert take even less time to discover misstatements but partners who are busy, of  lower quality, or are associated with more low-quality co-signers take more time to discover  misstatements. Moreover, we find that the mandatory partner rotation rule implemented in Taiwan  in 2004 shortens the time to discover misstatements and it mitigates the negative effect of long  partner tenure while preserves the benefit of short partner tenure. Finally, review partner tenure,  partner gender, and review partner gender do not affect the timeliness of misstatement discovery.  Overall, our results suggest that it is individual audit partners, not audit firms per se, who influence the timeliness of misstatement discovery because it is individual audit partners, not audit firms per  se, who are in charge of the audit. Our paper underscores the critical importance of conducting an  audit quality study at the level of individual auditors as called for in DeFond and Francis (2005).