Are disclosed auditor materiality thresholds informative of firms’ earnings quality? – Evidence from the revised ISA 700 audit report

• Main Authors: GOH, Beng Wee, LEE, Kiat Bee Jimmy, LI, Na, LI, Dan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Materiality threshold; Audit report; Earnings quality; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1767; https://ink.library.smu.edu.sg/context/soa_research/article/2794/viewcontent/Are_disclosed_auditor_materiality_thresholds_informative_of_firms_earnings_quality_20180507.pdf
• Institution: Singapore Management University

Under the Financial ReportingCouncil’s presumption that mandating new disclosure requirement in the auditreport would provide information useful to investors, we examine whether theauditor disclosed materiality threshold is associated with the firm’s earningsquality. We document that a lower thresho...