Abstract

This study investigates whether financial misstatement likelihood changed following the COVID-19 pandemic. Analyzing U.S. listed companies, this study finds firms affected by COVID-19 experienced a significant reduction in misstatement likelihood compared to unaffected firms, with the effect more pronounced among companies headquartered in severely impacted states. These results suggest regulators, companies, and auditors collectively addressed financial reporting challenges through enhanced mon...

Abstract

This study examines the relationship between corporate governance mechanisms and litigation risk management in Taiwanese listed companies over the period 2010 to 2018. Based on manually collected annual report disclosures, we identify whether firms recognize litigation obligations as expenses or provisions and use this as an indicator of poor litigation risk management quality. Corporate governance variables include the presence of directors with accounting or finance backgrounds, CEO duality, t...

Abstract

This study investigates whether audit quality is affected by concurrently providing sustainability report assurance and financial statement audit services (also referred to as “dual services”) to the same client, at both the firm and individual auditor levels. We further examine the moderating role of ESG assurance industry specialization. Our findings indicate that when individual auditors provide dual services, it is negatively associated with audit quality. However, individual auditors with E...

Abstract

Amid the trends of digital transformation and innovation, audit firms are actively fostering an innovation-oriented climate to meet technological advancements and market demands. However, whether such an innovation climate can effectively enhance audit quality requires further empirical verification. Therefore, this study investigates the impact of auditors' perceived innovation climate on audit quality. Focusing on partners from the Big 4 audit firms in Taiwan, this research collects their subj...