Non‐Audit Services and Auditor Independence in the 2007 Italian Regulatory Environment

Ianniello, Giuseppe

doi:10.1111/j.1099-1123.2012.00447.x

Cited by 18 publications

(10 citation statements)

References 43 publications

(48 reference statements)

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“…We find that auditor decisions do not produce a statistically significant market reaction (Table IV, columns A ϩ B ϩ C ϩ D). These results can be explained by the dissimilar nature of qualifications and unqualified opinions with emphasis of matter paragraphs in the Italian context (Ianniello, 2012), and thus, mixing the two groups of opinions does not produce a clear signal.…”

Section: Additional Testsmentioning

confidence: 92%

Stock market reaction to auditor opinions – Italian evidence

Ianniello

Galloppo

2015

Managerial Auditing Journal

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Purpose – The purpose of this paper is to examine investor reactions to auditor opinions containing qualifications or an emphasis of matter paragraph related to going concern uncertainty or financial distress. In particular, abnormal returns are analyzed around audit report dates. Design/methodology/approach – The event study methodology, focusing on a short event window, was used to determine whether there is an immediate market reaction to the audit report announcement, as might be expected assuming efficient stock markets. Findings – Overall, this analysis shows that the audit reports investigated have information content for investment decisions. In particular, the qualifications expressed in the audit report have a negative effect on stock prices. It is also shown that an unqualified opinion with an emphasis of matter paragraph regarding going concern uncertainty or financial distress has a positive effect on stock prices. These results also elucidate the distinction between different types of opinions in the Italian context. Research limitations/implications – This paper has attempted to limit the possible concurrent effects on stock prices using a short window event study methodology. However, the possibility that some other event may have occurred during this event window cannot be excluded. Among the policy implications coming from this research, it is argued that the authorities should regulate the public disclosure of audit reports, so that the information becomes available to the audited company and the other stakeholders on the same day, which, in theory, would be the day that the audit process concludes with the signing of the audit report. Originality/value – The findings of this paper show the relevance of audit reports, distinguishing the different impacts based on the types of audit opinions issued in a specific jurisdiction (qualified and unqualified with an emphasis of matter paragraph).

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Section: Additional Testsmentioning

confidence: 92%

Stock market reaction to auditor opinions – Italian evidence

Ianniello

Galloppo

2015

Managerial Auditing Journal

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“…Moreover, particularly tax and other fees are expected to decrease in the future as a consequence of the blacklist. Studies on other European countries also do not indicate an immediate effect of the cap on the non-audit fee ratio: Ianniello (2012) and André, Broye, Pong, and Schatt (2015) report non-audit fee ratios of 24.0% and 32.3% for Italy in 2007 and 2007 -2009 13 ;Eilifsen and Knivsflå (2013) , which clearly marks the highest non-audit fee ratio. 14 Moreover, compared to earlier studies, the non-audit fee ratio has regularly decreased after the major changes in the global audit market following the demise of Arthur Andersen.…”

Section: Current Provision Of Audit and Non-audit Servicesmentioning

confidence: 84%

“…For example, Italy has imposed bans virtually identical to SOX in the USA (Law No. 262, 2005;Ianniello, 2012). 7 There are also significant differences in the regulation of non-audit services overseas.…”

Section: Disclosure Statementmentioning

confidence: 95%

Restricting Non-Audit Services in Europe – The Potential (Lack of) Impact of a Blacklist and a Fee Cap on Auditor Independence and Audit Quality

Ratzinger‐Sakel

Schönberger

2015

Accounting in Europe

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The European audit reform aims to stabilize financial markets by enhancing trust in the statutory audit. To strengthen auditor independence and to increase audit quality, the provision of nonaudit services to audit clients is further restricted. The supranational introduction of a blacklist, including prohibited non-audit services, and of a cap on the volume of non-audit fees is a novelty on the European level. The purpose of this paper is threefold. First, we analyze these measures in light of both current national restrictions of non-audit services and auditor fee disclosure requirements in France, Germany and the UK. Second, we assess the potential impact of the cap on the volume of non-audit services by providing descriptive evidence on current fee levels in these three countries. Third, we critically assess the impact of the audit reform regarding non-audit services in light of audit research by analyzing the state of the art. On this basis, we doubt whether the European reform of auditor-provided non-audit services is effective and efficient. The main goal of enhancing perceived auditor independence and, thus, public trust in audited financial statements of public-interest entities may be hardly achieved and the blacklist might present a tradeoff between auditor independence and audit quality.

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“…Analisar as diferenças existentes entre a auditoria realizada por Big Four e não Big Four no tipo de relatório emitido, no Brasil, e a sua influência no recebimento de opinião modificada contribui para o fomento das pesquisas da área, a identificação das variáveis que afetam a opinião do auditor e a sinalização dos pontos que podem ser melhorados nos órgãos de regulação, por meio do estabelecimento de novas ações que almejem a evolução da auditoria e da sua qualidade (IANNIELLO, 2012;MARQUES et al,2015).…”

Section: Considerações Finaisunclassified

Avaliação Do Grau De Maturidade Do Sistema De Controlo Interno Bancário Em Angola Segundo a Metodologia Coso

Manuel¹,

Bravo²

2021

Administração, Finanças E Geração De Valor

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Direitos para esta edição cedidos à Atena Editora pelos autores. Todo o conteúdo deste livro está licenciado sob uma Licença de Atribuição Creative Commons. Atribuição-Não-Comercial-NãoDerivativos 4.0 Internacional (CC BY-NC-ND 4.0). O conteúdo dos artigos e seus dados em sua forma, correção e confiabilidade são de responsabilidade exclusiva dos autores, inclusive não representam necessariamente a posição oficial da Atena Editora. Permitido o download da obra e o compartilhamento desde que sejam atribuídos créditos aos autores, mas sem a possibilidade de alterá-la de nenhuma forma ou utilizá-la para fins comerciais. Todos os manuscritos foram previamente submetidos à avaliação cega pelos pares, membros do Conselho Editorial desta Editora, tendo sido aprovados para a publicação com base em critérios de neutralidade e imparcialidade acadêmica. A Atena Editora é comprometida em garantir a integridade editorial em todas as etapas do processo de publicação, evitando plágio, dados ou resultados fraudulentos e impedindo que interesses financeiros comprometam os padrões éticos da publicação. Situações suspeitas de má conduta científica serão investigadas sob o mais alto padrão de rigor acadêmico e ético.

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Non‐Audit Services and Auditor Independence in the 2007 Italian Regulatory Environment

Cited by 18 publications

References 43 publications

Stock market reaction to auditor opinions – Italian evidence

Stock market reaction to auditor opinions – Italian evidence

Restricting Non-Audit Services in Europe – The Potential (Lack of) Impact of a Blacklist and a Fee Cap on Auditor Independence and Audit Quality

Avaliação Do Grau De Maturidade Do Sistema De Controlo Interno Bancário Em Angola Segundo a Metodologia Coso

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