Essays on audit report lag

Audit reporting lag continues to remain an issue of significant interest to regulators, financial statement users, public companies, and auditors. The SEC has recently acted to reduce the deadline for filing annual and quarterly financial statements. Such focus on audit reporting lag arises because, as noted by the Financial Accounting Standards Board, relevance and reliability are the two primary qualities of accounting information; and, to be relevant, information has to be timely. In my dissertation, I examine three issues related to the audit report lag. The first essay focuses on the association between audit report lag and the meeting or beating of earnings benchmarks. I do not find any association between audit report lag and just meeting or beating earnings benchmarks. However, I find that longer audit report lag is negatively associated with the probability of using discretionary accruals to meet or beat earnings benchmarks. We can infer from these results that audit effort, for which audit report lag is a proxy, reduces earnings management. The second part of my dissertation examines the association between types of auditor changes and audit report lag. I find that the resignation of an auditor is associated longer audit report lag compared to the dismissal of an auditor. I also find a significant positive association between the disclosure of a reportable event and audit report lag. The third part of my dissertation investigates the association between senior executive changes and audit report lag. I find that audit report lag is longer when client firms have a new CEO or CFO. Further, I find that audit report lag is longer when the new executive is someone from outside the firm. These results provide empirical evidence about the importance of senior management in the financial reporting process.

Academic performance of college students in financial management and related prerequisite courses: A comparison of senior high school and commercial high school graduates attending Tamsui Oxford University College in Taiwan

In Taiwan, the college freshmen are recruited graduates of both senior high school and senior vocational school. The Ministry of Education (MOE) of the Republic of China prescribes the standards of curriculum and equipment for schools at all levels and categories. There exists a considerably different curriculum arrangement for senior high schools and vocational high schools in Taiwan at the present time. The present study used a causal-comparative research design to identify the influences of different post-secondary educational background on specialized course performance of college business majors. ^ The students involved in this study were limited to the students of four business-related departments at Tamsui Oxford University College in Taiwan. Students were assigned to comparison groups based on their post-secondary educational background as senior high school graduates and commercial high school graduates. The analysis of this study included a comparison of students' performance on lower level courses and a comparison of students' performance in financial management. The analysis also considered the relationship between the students' performance in financial management and its related prerequisite courses. The Kolb Learning Style Inventory (LSI) survey was administered to categorize subjects' learning styles and to compare the learning styles between the two groups in this study. The applied statistical methods included t-test, correlation, multiple regression, and Chi-square. ^ The findings of this study indicated that there were significant differences between the commercial high school graduates and the senior high school graduates on academic performances in specialized courses but not in general courses. There were no significant differences in learning styles between the two groups. These findings lead to the conclusion that business majors' academic performance in specialized courses were influenced by their post-secondary educational background. ^

Senior Savvy: Mature Diner's Restaurant Service Expectations

This article is a reflection of a study conducted with active mature consumers who enjoy dining out, traveling, and patronizing the service industry in general. The goal was to discover their restaurant service expectations in order to provide restaurateurs, hoteliers, educators, and students of hospitality management programs information about this important customer segment so that future plans for improving service would include considerations of their service needs.