讲座题目: Effort Allocation in Integrated Audits and Implications for Financial Reporting Quality
演讲嘉宾:刘馨茗 副教授(厦门大学会计系)

讲座时间:2023年10月20日(周五)10:00-11:30

讲座地点:美狮贵宾会注册登录B区105教室

嘉宾介绍:

刘馨茗，厦门大学会计学副教授。香港城市大学会计学硕士、台湾政治大学会计学博士、香港中文大学会计学访问学者。主要研究方向为审计、公司治理、资本市场财务会计、内部控制，在Contemporary Accounting Research、Accounting & Finance、European Accounting Review、 Journal of Business Research、《会计研究》《经济管理》等国际国内高质量刊物发表学术论文多篇,主持国家自然科学基金、审计署重点科研课题等多项课题,获得福建省社科优秀成果奖等多个奖项。

内容简介：

This study investigates the implications of effort allocation in integrated audits on financial reporting quality using disclosures resulting from China's 2012 rule mandating that listed firms disclose their internal control and financial statement audit fees separately in annual reports. Motivated by concerns that auditors often fail to properly assess control risk and therefore over-rely on internal controls, we examine whether over-reliance on internal controls, defined as auditors allocating greater effort to the audit of internal controls and less effort to the financial statement audit, relative to expected levels of effort, negatively impacts financial reporting quality. Based on a sample of 9,627 firm-year observations from A-share companies listed on China's stock exchanges during 2012-2019,we find evidence that over-reliance on internal controls is associated with lower financial reporting quality. However, the negative effect of over-reliance is mitigated when the auditor is an industry expert in the audit of internal control. Overall, our findings suggest that integrated audits may result in lower financial reporting quality when auditors over-rely on internal controls relative to a more balanced strategy of strategy of control and substantive testing, and also suggest disclosure of fees related to internal control audits and financial statement audits provides information relevant to assessing financial reporting quality.