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dc.contributor.authorChi, Wuchun
dc.contributor.authorLisic, Ling
dc.contributor.authorMyers, Linda A
dc.contributor.authorPevzner, Mikhail
dc.date.accessioned2017-06-27T15:01:20Z
dc.date.available2017-06-27T15:01:20Z
dc.date.issued2015
dc.description.abstractUsing data from Taiwan where engagement partner names are disclosed and misstatements of clients’ annual financial statements to proxy for audit quality, we examine whether audit quality at the engagement partner level persists, and whether an engagement partner’s reputation for prior audit quality is informative about current audit quality. We find that at the engagement partner level, year t-1 misstatements made by other audit clients predict year t misstatements for clients without a history of misstatements in the preceding three years, but this effect is mitigated by engagement partner experience. In addition, we find a positive association between the incidence of restatements made by an engagement partner’s clients in the previous two or three years and the likelihood that a different client misstates in the current year, suggesting that partner-level restatements provide information about future audit quality. Finally, we find that an engagement partner’s reputation for past client misstatements (as disclosed in restatements) is associated with a higher likelihood of that partner losing existing clients and a lower likelihood of that partner attracting new audit clients. Collectively, our results suggest that engagement partner identification can reveal information that is informative about audit quality and affects stakeholder perceptions of audit quality, providing some support for the Public Company Accounting Oversight Board’s proposal to disclose the names of engagement partners in the U.S.en_US
dc.description.urihttps://poseidon01.ssrn.com/delivery.php?ID=791101027092092122084019000077104018105084007031052035109089086088105012086002016089043050055106031007050103096001079085016113025019027055033021097002089023120067055086024100069002001091110075126122093029113017080102088007004074114084009069104093009&EXT=pdfen_US
dc.format.extent44 pagesen_US
dc.genrejournal articlesen_US
dc.identifierdoi:10.13016/M28K74W6V
dc.identifier.citationChi, Wuchun and Lisic, Ling Lei and Myers, Linda A. and Pevzner, Mikhail, Information in Financial Statement Misstatements at the Engagement Partner Level: A Case for Engagement Partner Name Disclosure? (January 2015).en_US
dc.identifier.uri10.2139/ssrn.2558481
dc.identifier.urihttp://hdl.handle.net/11603/4210
dc.language.isoen_USen_US
dc.publisherSSRNen_US
dc.relation.isAvailableAtUniversity of Baltimore
dc.subjectaudit qualityen_US
dc.subjectengagement partnersen_US
dc.subjectmisstatementsen_US
dc.subjectrestatementsen_US
dc.titleInformation in Financial Statement Misstatements at the Engagement Partner Level: A Case for Engagement Partner Name Disclosure?en_US
dc.typeTexten_US


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