Improving fraud detection, financial reporting quality, investor confidence and market returns by using specialist auditors.

  • Godfrey, Jayne, (Primary Chief Investigator (PCI))
  • Hamilton, Jane (Chief Investigator (CI))
  • Jeter, Debra (Partner Investigator (PI))

Project: Research

Project Description

We investigate whether fraud detection and financial reporting quality improve if accounts are audited by a
specialist, and whether investor confidence and share returns improve - as indicated by reduced financial
statement restatements and discretionary accruals, greater cash flow realisations of past earnings, and
stronger market responses to earnings. Examining if results are stronger for industries and firms with highly
differentiated growth potential and using refined auditor specialisation measures extends prior research. The
research is significant because of the potential role of specialist auditors in combating the increasing
incidence of restatements and the global financial crisis-induced pressure to manage reported earnings.
StatusFinished
Effective start/end date4/01/1131/12/13

Funding

  • Australian Research Council (ARC): AUD131,864.00
  • Australian Research Council (ARC): AUD6,500.00
  • Monash University
  • Australian Research Council (ARC)
  • Australian Research Council (ARC)