The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereb...The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereby emphasizing the importance of corporate governance in companies. Recently, following the financial crises resulting in accounting scandals, attention has been moving towards internal audit function as an important factor in the structure of corporate governance. This paper therefore examined the extent of the relationship between internal audit function and the quality of accounting information of companies. The study adopted the survey research design. The research instrument employed was questionnaire which was administered to internal auditors of the ＂Big Four＂. Linear regression analysis was employed in the analysis of the data collected with the use of Statistical Packages for Social Sciences （SPSS）. The results revealed that there is a significant relationship between the internal audit characteristics and the quality of accounting information. It was recommended that in order to provide credibility to the financial statement, there should be a law in place mandating attachment of internal auditors report to the financial statement.展开更多
This study provides some insights of investors＇ view on auditor independence focusing on auditor switching. Hence, the purpose of this study is to examine the effect of appointing a new auditor on investors＇ reliabi...This study provides some insights of investors＇ view on auditor independence focusing on auditor switching. Hence, the purpose of this study is to examine the effect of appointing a new auditor on investors＇ reliability on reported earnings in financial accounts. Analyses are based on a matched-pair sample of 162 listed companies in the Bursa Malaysia for the year 2011. The results of the ordinary least squares （OLS） regression show that earnings response coefficients for auditor switching companies are significantly higher than for non-auditor switching companies. The results provide support for the contention that investors place greater reliability on the financial accounts audited by newly appointed auditors. This finding is consistent with the Malaysian audit market where long audit tenure is a common practice and auditor switching is considered rare. Findings provide support for the long discussed issue of the importance of auditor rotation in maintaining auditor independence.展开更多
This paper presents an in-depth analysis of financially distressed listed companies in China between 1998 and 2002. We compare the predictive power of multiple discriminant analysis （MDA）, logistic regression, and n...This paper presents an in-depth analysis of financially distressed listed companies in China between 1998 and 2002. We compare the predictive power of multiple discriminant analysis （MDA）, logistic regression, and neural network models. We design and implement 126 different forecasting models using different predictive methods, different sample proportions, and different initial independent variables. The aim is to determine which model（s） and variables are best applicable for the short-term prediction of financial distress in China. We find that logistic regression models are superior to multiple discriminant analysis models in terms of prediction accuracy rate, restriction of sample distribution or prediction cost, but the neural network models show promise in their low Type I and Type II errors. The paper also inherently tests the applicability of variables traditionally used for bankruptcy prediction to the purpose of financial distress prediction in China.展开更多
文摘The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereby emphasizing the importance of corporate governance in companies. Recently, following the financial crises resulting in accounting scandals, attention has been moving towards internal audit function as an important factor in the structure of corporate governance. This paper therefore examined the extent of the relationship between internal audit function and the quality of accounting information of companies. The study adopted the survey research design. The research instrument employed was questionnaire which was administered to internal auditors of the ＂Big Four＂. Linear regression analysis was employed in the analysis of the data collected with the use of Statistical Packages for Social Sciences （SPSS）. The results revealed that there is a significant relationship between the internal audit characteristics and the quality of accounting information. It was recommended that in order to provide credibility to the financial statement, there should be a law in place mandating attachment of internal auditors report to the financial statement.
文摘This study provides some insights of investors＇ view on auditor independence focusing on auditor switching. Hence, the purpose of this study is to examine the effect of appointing a new auditor on investors＇ reliability on reported earnings in financial accounts. Analyses are based on a matched-pair sample of 162 listed companies in the Bursa Malaysia for the year 2011. The results of the ordinary least squares （OLS） regression show that earnings response coefficients for auditor switching companies are significantly higher than for non-auditor switching companies. The results provide support for the contention that investors place greater reliability on the financial accounts audited by newly appointed auditors. This finding is consistent with the Malaysian audit market where long audit tenure is a common practice and auditor switching is considered rare. Findings provide support for the long discussed issue of the importance of auditor rotation in maintaining auditor independence.
文摘This paper presents an in-depth analysis of financially distressed listed companies in China between 1998 and 2002. We compare the predictive power of multiple discriminant analysis （MDA）, logistic regression, and neural network models. We design and implement 126 different forecasting models using different predictive methods, different sample proportions, and different initial independent variables. The aim is to determine which model（s） and variables are best applicable for the short-term prediction of financial distress in China. We find that logistic regression models are superior to multiple discriminant analysis models in terms of prediction accuracy rate, restriction of sample distribution or prediction cost, but the neural network models show promise in their low Type I and Type II errors. The paper also inherently tests the applicability of variables traditionally used for bankruptcy prediction to the purpose of financial distress prediction in China.
