Quality accounting information and audit effort: The Spanish case

Small Business International Review

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Title Quality accounting information and audit effort: The Spanish case
Calidad de la información contable y esfuerzo del auditor: El caso español
Creator Fenoll-Bernal, Antonio
Serrano Madrid, Jose
Subject accruals
audit effort
small auditing firms
ajustes por devengo
esfuerzo del auditor
pequeños auditores
Description The objective of this paper is to analyze if small and medium auditors are able to detect the earning managments in their audited companies and, in that case, if the increase of the audit effort produces a lower level of discretionary accruals. As a particular contribution, the auditor's effort has been measured through the hours actually spent, unlike previous work based on estimated or subrogated fees or hours. Similarly, the sample used is composed of small and medium-sized audit firms, which gives added value for this segment of the most competitive audit market. The results show that the client reduces the positive abnormal accruals if the audit effort increases, thus valuing his figure as guarantor of the financial information, contributing to the debate on the quality of small firms. Regarding the negative accrual adjustments, it could be interpreted as an auditor passivity against the accounting conservatism and a learning effect on the client, which increases the negative discretional accruals as the contractual relationship with the auditor increases
El objetivo de este trabajo es analizar si los auditores son capaces de detectar la gestión de resultados en sus empresas auditadas y si ante un incremento en el esfuerzo, el nivel de devengos discrecionales será menor. Como singular contribución, se mide el esfuerzo del auditor mediante las horas efectivamente empleadas, al contrario que trabajos anteriores que se basan en honorarios u horas estimadas o subrogados de estas. Asimismo, la muestra utilizada está compuesta por pequeñas y medianas firmas de auditoría, lo que le aporta un valor añadido por ser este segmento del mercado de auditoría más competitivo. Los resultados evidencian que el cliente reduce los devengos anormales positivos del resultado ante un incremento del esfuerzo del auditor, poniendo así en valor su figura como garante de la información financiera, contribuyendo al debate sobre la calidad de las pequeñas firmas. En lo que respecta a los ajustes por devengo negativos, se puede interpretar una pasividad del auditor ante el conservadurismo contable y un efecto aprendizaje en el cliente, que aumenta la manipulación negativa de resultados conforme se incrementa la duración contractual con el auditor
Publisher Spanish Accounting and Business Administration Association (AECA) and Universidad Politécnica de Cartagena (UPCT)
Date 2020-01-01
Type info:eu-repo/semantics/article
Peer-reviewed Article
Artículos revisados por pares
Format application/pdf
Identifier https://sbir.upct.es/index.php/sbir/article/view/244
Source Small Business International Review; Vol. 4 No. 1 (2020): January - June 2020; 52-68
Small Business International Review; Vol. 4 Núm. 1 (2020): Enero - Junio 2020; 52-68
Language spa
Relation https://sbir.upct.es/index.php/sbir/article/view/244/116
Rights Copyright (c) 2020 Antonio Fenoll-Bernal, Jose Serrano Madrid

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