Why press coverage of a client influences the audit opinion
成果类型：
Article
署名作者：
Joe, JR
署名单位：
University System of Georgia; Georgia State University
刊物名称：
JOURNAL OF ACCOUNTING RESEARCH
ISSN/ISSBN：
0021-8456
DOI：
10.1111/1475-679X.00098
发表日期：
2003
页码：
109-133
关键词：
摘要：
In this study I use an experiment to examine why auditors are more likely to issue going-concern opinions when the client has been, the subject of negative press coverage prior to the date of the audit opinion. I find no evidence that negative press coverage increases auditors' perceptions of legal liability, as was suggested in the prior literature. I do find, however, that negative press coverage increases auditors' perception of a client's bankruptcy probability and this, in turn, leads auditors to modify the audit opinion. Because the press coverage presented in this study provides no new information, the results suggest that auditors react too strongly to redundant information. This over-reaction can result in inefficient allocation of audit resources and can have deleterious affects on clients. Accordingly, policy makers, auditors and their clients might be interested in how auditors' reliance on redundant information can be reduced.
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