审计事务所行业专业化和业主信息质量披露外文翻译.docVIP

外文翻译 Audit Firm Industry Specialization and Client Disclosure Quality Material Source: Review of Accounting Author: Kimberly A. Dunn, Brian W. Mayhew The objective of this paper is to provide evidence on the effects of hiring an industry specialist auditor. Specifically, we examine the association between the use of an industry specialist audit firm and the quality of the firm’s disclosures. This research contributes to the broader question of how auditor choice impacts, or is associated with, financial reporting quality. Contemporaneous research provides some evidence that industry specialists are associated with higher earnings quality. Balsam et al.(2003) provide evidence that industry specialist are associated with higher earnings response coefficients and Gramling et al. (2000) provide evidence that industry specialists are associated with a stronger association between current earnings and subsequent cash flows. The current paper contributes to this evidence by looking at financial reporting quality more broadly defined. We examine the association between industry specialization and client disclosure quality as measured by the analysts’ disclosure quality evaluations reported in the annual Association for Investment Management and Research (AIMR) Corporate Information Committee Reports. AIMR formed industry committees of buy and sell side analysts to evaluate the disclosure quality of companies within selected industries until 1996. Annual AIMR reports evaluated firm disclosure quality on a number of dimensions including annual published information, quarterly and other published information, and investor relations. While the AIMR rankings likely capture quality of earnings as part of their rankings, they provide a much broader assessment of a firm’s overall disclosure strategy. This paper provides evidence that clients select auditors as part of their overall disclosure strategy. The evidence is consistent with both industry-specialists assisting clients in