Audit Committee Composition and Auditor Reporting

Carcello, Joseph V.; Neal, Terry L.

doi:10.2139/ssrn.229835

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Audit Committee Composition and Auditor Reporting

35 Pages Posted: 12 Oct 2000

See all articles by Joseph V. Carcello

Terry L. Neal

University of Tennessee

There are 2 versions of this paper

Date Written: Undated

Abstract

This study examines the relation between the composition of financially distressed firms' audit committees and the likelihood of receiving going-concern reports. For firms experiencing financial distress during 1994, we find that the greater the percentage of affiliated directors on the audit committee, the lower the probability the auditor will issue a going-concern report. These results support regulators' concern about financial reporting quality and the recent calls for more independent audit committees.

JEL Classification: G32, G34, M41, M49

Suggested Citation: Suggested Citation

Carcello, Joseph V. and Neal, Terry L., Audit Committee Composition and Auditor Reporting (Undated). Available at SSRN: https://ssrn.com/abstract=229835 or http://dx.doi.org/10.2139/ssrn.229835

Joseph V. Carcello (Contact Author)

University of Tennessee ( email )

Department of Accounting & Information Management
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