The Communicative Value of the Auditor's Report

Paul J. Coram · Theodore J. Mock · Jerry L. Turner · Glen L. Gray

55 citations0/0 files storedAustralian Accounting Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Corporate Governance and Financial Management Financial Reporting and XBRL

Abstract

Communicating the results of the audit is a crucial part of the audit process. This potentially enables the users of financial reports to assess the quality of the audit, which will in turn contribute to their assessments of financial reporting quality. This research reports the results of a verbal protocol study of 16 financial analysts to assess how they use an auditor's report as part of a company evaluation. Auditors’ reports perse are found to be important to analysts in that they signal a level of reliability in the financial statements. However, the content of the auditor's report, including the additional content of the recently issued longer form auditor's report (ISA 700, ASA 700), generally was not attended to by the analysts. This suggests the communicative value of the auditor's report is minimal beyond signalling the elevated reliability of the financial statements.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 55 citations exist upstream.

References

1983Agency Problems, Auditing, and the Theory of the Firm: Some Evidence 1999Empirical Analysis of the Economic Demand for Auditing in the Initial Public Offerings Market 2009The global audit profession and the international financial architecture: Understanding regulatory relationships at a time of financial crisis 1978Exploring predecisional behavior: An alternative approach to decision research 1986Abnormal stock returns associated with media disclosures of ‘subject to’ qualified audit opinions 2008The Auditor's Reporting Model: A Literature Overview and Research Synthesis 1993Why Do Private Companies Demand Auditing? A Case for Organizational Loss of Control 2011Perceptions and Misperceptions Regarding the Unqualified Auditor's Report by Financial Statement Preparers, Users, and Auditors

Cited by

2023Does managerial ability and auditor report readability affect corporate liquidity and cost of debt?2017Does board independence substitute for external audit quality? Evidence from an exogenous regulatory shock 2019Integrated Reporting Assurance: Perceptions of Auditors and Users in Spain 2017The Changing Face of the Auditor's Report: Implications for Suppliers and Users of Financial Statements

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.