When companies fire their auditor in the second half of their financial year, or after the year
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Question:
When companies fire their auditor in the second half of their financial year, or after the year ends when auditors have begun their fieldwork, the chance of a future restatement is 40% higher compared with companies that haven't switched auditors, the study found:
1) Why does the chance of a future restatement increase when auditors are fired late in the fiscal year?
2) Why do companies provide little information about the reasons that the company fired their auditor?
Related Book For
Ethical Obligations And Decision Making In Accounting Text And Cases
ISBN: 9781264135943
6th Edition
Authors: Steven Mintz
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