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Title: | Auditing private firms in a civil law context: an exploratory analysis of the impact on form and substance quality | Authors: | CORTEN, Maarten LYBAERT, Nadine STEIJVERS, Tensie |
Issue Date: | 2022 | Publisher: | ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD | Source: | SPANISH JOURNAL OF FINANCE AND ACCOUNTING-REVISTA ESPANOLA DE FINANCIACION Y CONTABILIDAD, | Status: | Early view | Abstract: | This study examines to what extent auditors increase financial reporting quality in a civil law private firm context. Although such context provides little incentives to focus on financial reporting quality, the signalling role remains important. Therefore, we argue that auditors will also increase the quality of the financial statements in this context but will primarily focus on the form quality of the statements (i.e., the extent to which the required disclosures are made) while the substance quality (i.e., the extent to which the financial statements faithfully represent the economic reality) might become a smaller concern. A new measure for form quality is developed, and two matched samples of 278 and 316 Belgian private firms respectively are used to test our hypotheses. Our results confirm that having an auditor significantly increases the form quality of the financial statements while the effect on substance quality is more ambiguous. | Notes: | Corten, M (corresponding author), Hasselt Univ, Res Ctr Entrepreneurship & Family Firms RCEF, Martelarenlaan 42, B-3500 Hasselt, Belgium. maarten.corten@uhasselt.be |
Keywords: | Audit quality;private firms;civil law context;form quality;substance quality | Document URI: | http://hdl.handle.net/1942/38649 | ISSN: | 0210-2412 | e-ISSN: | 2332-0753 | DOI: | 10.1080/02102412.2022.2109839 | ISI #: | 000851583600001 | Rights: | 2022 Asociación Española de Contabilidad y Administración de Empresas (AECA) | Category: | A1 | Type: | Journal Contribution | Validations: | ecoom 2023 |
Appears in Collections: | Research publications |
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File | Description | Size | Format | |
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Corten et al., 2022, peer reviewed author version.pdf | Peer-reviewed author version | 473.48 kB | Adobe PDF | View/Open |
Auditing private firms in a civil law context_ an exploratory analysis of the impact on form and substance quality.pdf Restricted Access | Early view | 643.37 kB | Adobe PDF | View/Open Request a copy |
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