Auditor Tenure and the Ability to Meet or Beat Earnings Forecasts

By L. Davis, Billy S. Soo, Gregory M. Trompeter. 2009

434 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/6a92820735c5221d7c961e6f9a005d65e4e3e5e3

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Citations in the corpus

Abnormal Audit Fee and Audit Quality (2012, result): “Consistent with prior research, we define audit quality as the client’s earnings quality (Higgs and Skantz 2006; Lim and Tan 2008; Davis et al. 2009; Francis and Yu 2009; Reichelt and Wang 2010; Choi et al. 2010).”
Audit Quality: Insights from the Academic Literature (2013, background): “Davis et al. (2009) is one of the few studies to find”
How Do Various Forms of Auditor Rotation Affect Audit Quality? Evidence from China (2012, background): “Most of these studies document a positive association between auditor tenure and FRQ/AQ, while a few of them find a negative association under certain conditions, such as excessively long tenure (Chi and Huang, 2005), certain audit quality proxies (Carey and Simnett, 2006), or in the pre-SOX period ”
Does Auditor Tenure Improve Audit Quality? Moderating Effects of Industry Specialization and Fee Dependence (2009, neutral): “For instance, there is evidence that extended tenure is associated with both positive and negative effects on audit quality (Davis, Soo, and Trompeter 2008).”
Auditor Independence and Audit Quality (2015, background): “Davis, Soo, and Trompeter (2009) document that short- and long-term tenure is associated with the increased use of discretionary accruals to meet earnings forecast before the enactment of SOX; however, these results disappear in the post-SOX period.”
Does Mandatory Rotation of Audit Partners Improve Audit Quality (2014, background): “Our results underscore the importance of examining mandatory rather than voluntary rotations in order to draw reliable inferences about the consequences of mandatory rotation.”
Audit Quality and Specialist Tenure (2018, methodology): “15 Consistent with DeAngelo (1981) and most prior research, we define audit quality based on audit outputs reasoning that audit failure occurs when financial statements are materially misstated.”
Is Enhanced Audit Quality Associated with Greater Real Earnings Management (2011, background): “However, Davis et al. (2009) find that, pre-SOX, longer audit firm tenure is associated with deteriorating audit quality in the form of a client’s ability to use discretionary accruals to meet or beat forecasts.”
Measuring audit quality (2021, neutral): “On the other hand, Davis, Soo, and Trompeter (2009) find that longer auditor tenure can be associated with deteriorated audit quality.”