Analysts’ Evaluation of the Information Content of Changes in Auditor Types

Companies hire auditors to meet legal requirements if they are publicly traded and to provide credibility to their financial statements. However, all auditors may not provide the same level of service to third parties. Prior research regarding such events as initial public offerings has found qualitative differences among big Five and non-Big Five auditors. Companies may, therefore, switch auditors to attain some perceived qualitative difference in the audit engagement. The degree that this auditor change is or is not incorporated by financial analysts into analysts\u27 forecasts has not been fully researched for the benefit of determining if there is any information content associated with the auditor change on security prices. The results of this study show that financial analysts do not fully incorporate information relative to auditor changes in their forecasts. This study might provide insight into the currently accepted view of the Efficient Market Hypothesis with respect to the information content of auditor changes and the market\u27s interpretation of the information. In addition, analysts may need to scrutinize auditor changes more closely in order to fully understand the signal that may be included in the decision to change auditors

The Influence of WebTrust On Purchases

We investigate the effect of the AICPA’s WebTrust seal on a company’s web site on the decision to purchase a product from a traditional store on on-line via the Web.  We also assess the effect of providing training about web certification on subject’s decisions to purchase via a traditional store or on-line.  In this study, we find that the presence of a WebTrust seal is not associated with more on-line purchases than when the WebTrust seal is not present.  Further, we find that providing training about web certification does not increase the likelihood of a purchase being made on-line rather than through a traditional store

Analysts’ Evaluation of the Information Content of Changes in Auditor Types

Companies hire auditors to meet legal requirements if they are publicly traded and to provide credibility to their financial statements. However, all auditors may not provide the same level of service to third parties. Prior research regarding such events as initial public offerings has found qualitative differences among big Five and non-Big Five auditors. Companies may, therefore, switch auditors to attain some perceived qualitative difference in the audit engagement. The degree that this auditor change is or is not incorporated by financial analysts into analysts\u27 forecasts has not been fully researched for the benefit of determining if there is any information content associated with the auditor change on security prices. The results of this study show that financial analysts do not fully incorporate information relative to auditor changes in their forecasts. This study might provide insight into the currently accepted view of the Efficient Market Hypothesis with respect to the information content of auditor changes and the market\u27s interpretation of the information. In addition, analysts may need to scrutinize auditor changes more closely in order to fully understand the signal that may be included in the decision to change auditors

Auditing r Assurance Services

xxiii, 865 p : Il.; 28 c

Auditing and assurance services

Additional McGraw-Hill International

Auditing & Assurance Services

Pembelian865 hl

Auditing and Assurance Services

Additional McGraw-Hill International

Auditing & Assurance Services

841 hal.; 28 c

Auditing and assurance services

xxxi, 884 hlm. : ilus. ; tab. ; 27,5 cm