Abstract

http://ssrn.com/abstract=2756
 
 

Citations



 


 



Evidence of Regulatory Noncompliance with SEC Disclosure Rules on Auditor Changes


Kenneth B. Schwartz


Boston College

Billy S. Soo


Boston College


THE ACCOUNTING REVIEW, Vol 71, No 4, October 1996

Abstract:     
This paper identifies widespread noncompliance with SEC regulations requiring prompt disclosure of auditor changes and investigates whether late filers and their auditors simply lack SEC expertise or have other reasons to delay reporting the auditor change. Some direct evidence in support of a specific Big-6 "quality" differential is provided. Most notably, the time to file the Form 8-K and the frequency of late filings increase significantly when non-Big 6 auditors are involved. Additionally, shorter filing delays and gradually higher compliance rates are detected after 1989 when the SEC reduced the Form 8-K filing time and the AICPA instituted a requirement for auditors to notify the Commission independently when a change occurs. We also find that late filers are more likely to be smaller and financially distressed, and less likely to issue securities following the auditor change, suggesting that compliance is affected by factors other than competency.

JEL Classification: M40, M41, K22, M49

Accepted Paper Series


Not Available For Download

Date posted: September 25, 1996  

Suggested Citation

Schwartz, Kenneth B. and Soo, Billy S., Evidence of Regulatory Noncompliance with SEC Disclosure Rules on Auditor Changes. THE ACCOUNTING REVIEW, Vol 71, No 4, October 1996. Available at SSRN: http://ssrn.com/abstract=2756

Contact Information

Kenneth B. Schwartz
Boston College ( email )
Carroll School of Accounting
Chestnut Hill, MA 02167
United States
617-552-3942 (Phone)
617-552-2097 (Fax)
Billy S. Soo (Contact Author)
Boston College ( email )
Carroll School of Management
140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States
617-552-3963 (Phone)
617-552-2097 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 1,009

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.203 seconds