Non-audit services, auditor quality and the value relevance of earnings

This paper tests the hypothesis that there is an inverse relation between non-audit services (NAS) provided by a firm auditor and the value relevance of earnings(measured as the earnings response coefficient) and that this relation is weaker for firms with Big 6 auditors. The hypothesis is based on anecdotal evidence and previous research that suggests that the provision of NAS by the external auditor is likely to adversely affect investors’ perceptions of the credibility of financial reports, and that Big 6 auditors, because of reputational capital and litigation costs,are likely to mitigate the adverse effects of NAS. Results using 840 firm-year observations of Australian companies document a statistically significant inverse relationship between NAS and the value relevance of earnings, and this inverse relationship is weaker for Big 6 auditors, therefore supporting the hypothesis.

Was audit quality of Laventhol and Horwath poor?

Laventhol and Horwath (L&H), the then seventh largest accounting firm in the US, declared bankruptcy in November 1990. The firm claimed that its bankruptcy was due to the perception of it being a deep pocket rather than inherent deficiencies in its performance. In this study, we examine whether the audit quality of L&H was lower than other auditors. Results do not show that L&H is associated with lower quality audits either in terms of lower likelihood of issuing modified audit opinion, higher levels of discretionary accruals for its clients, or lower predictability of discretionary accruals for future non-discretionary net income for its clients than for clients of other auditors. Results of additional tests also do not suggest that auditors that take up clients of L&H report differently from L&H. This evidence does not support the proposition that L&H’s audit quality was less than audit quality of other audit firms during the period leading up to the bankruptcy.

Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity : evidence from China

This paper investigates the effects of largest-shareholder ownership concentration, foreign ownership, and audit quality on the amount of firm-specific information incorporated into share prices, as measured by stock price synchronicity, of Chinese-listed firms over the 1996–2003 period. We show that synchronicity is a concave function of ownership by the largest shareholder with its maximum at an approximate 50% level. Further, we find that synchronicity is higher when the largest shareholder is government related. We also find that foreign ownership and auditor quality are inversely associated with synchronicity. Finally, we show that the amount of earnings information reflected in stock returns is lower for firms with high synchronicity.

‘It’s like Spiderman… with great power comes great responsibility’: school autonomy, school context and the audit culture

This paper explores issues of school autonomy within the context of the performative demands of the audit culture. The focus is on a case study of Clementine Academy, a large and highly diverse English secondary school. Specific situated, professional, material and external factors at the school were significant in shaping Clementine’s response to and take-up of the policy of academisation (a key reform within broader government mandates to create an increasingly autonomised education system). Factors such as the school’s intake and history, its ethos and values, its access to human and economic resources and its status and power as an outstanding school supported its confident and ‘morally’ focused take-up of this policy. Clementine’s privileged position in relation to these factors enabled the school to mediate and challenge some of the negative effects of the audit culture. This paper highlights the significance of considering these contextual factors in understanding the different ways in which schools are currently engaging their autonomy to cope with the demands of the audit culture.

Thriving amid the performative demands of the contemporary audit culture: a matter of school context

The predominant focus in this paper is on issues of school context and, in particular, on the dimensions of context at a large English comprehensive school that enable it to thrive within the current demands of the contemporary audit culture. Featuring interview data gathered from a number of senior educators, the paper draws on Braun et al’s (Braun, A., S. Ball, M. Maguire, and K. Hoskins. 2011. “Taking Context Seriously: Towards Explaining Policy Enactments in the Secondary School.” Discourse: Studies in the Politics of Education 32 (4): 585 -596) heuristic device for thinking about the ‘situated’, ‘professional’ and ‘external’ dimensions of context at the school. This device supports an analysis of the school’s intake (in particular the high cultural and class related aspirations of parents and students) and its values (namely the school’s traditional ethos of academic and behavioural excellence). The central argument of the paper is that these contextual dimensions contribute significantly to the school’s capacity to forge a worthy school identity within the current hyper-accountable and competitive environment where academic achievement (along increasingly narrow and conservative lines) and maintaining standards in relation to this achievement are utmost priorities.

Audit report on the Lake Panorama Rural Improvement Zone for the year ended June 30, 2016

Audit report on the Lake Panorama Rural Improvement Zone for the year ended June 30, 2016

Audit report on the Council Bluffs Airport Authority for the year ended June 30, 2016

Audit report on the Council Bluffs Airport Authority for the year ended June 30, 2016

Audit report on the Honey Creek Resort Operations Account maintained by Central Group Management, LLC for the year ended June 30, 2016

Audit report on the Honey Creek Resort Operations Account maintained by Central Group Management, LLC for the year ended June 30, 2016

Audit report on the City of Knoxville, Iowa for the year ended June 30, 2016

Audit report on the City of Knoxville, Iowa for the year ended June 30, 2016

Audit report on the Muscatine Agricultural Learning Center for the year ended June 30, 2016 and the six months ended June 30, 2015

Audit report on the Muscatine Agricultural Learning Center for the year ended June 30, 2016 and the six months ended June 30, 2015

Audit report on the Holiday Lake Rural Improvement Zone for the year ended June 30, 2016

Audit report on the Holiday Lake Rural Improvement Zone for the year ended June 30, 2016

Audit report on the Black Hawk County Criminal Justice Information System for the year ended June 30, 2016

Audit report on the Black Hawk County Criminal Justice Information System for the year ended June 30, 2016

Audit report on the South Dallas County Landfill Agency for the year ended June 30, 2016

Audit report on the South Dallas County Landfill Agency for the year ended June 30, 2016

Audit report on the City of Adel, Iowa for the year ended June 30, 2016

Audit report on the City of Adel, Iowa for the year ended June 30, 2016