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Discussion of “The Consequences of Audit‐Related Earnings Revisions”
Author(s) -
Hillison Sean M.,
Peecher Mark E.
Publication year - 2017
Publication title -
contemporary accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.769
H-Index - 99
eISSN - 1911-3846
pISSN - 0823-9150
DOI - 10.1111/1911-3846.12347
Subject(s) - audit , earnings , accounting , competence (human resources) , business , actuarial science , economics , management
Abstract We organize our discussion of Haislip, Myers, Scholz, and Seidel (2017) (hereafter HMSS ) around three areas: managing auditor business risk, a lack of auditor competence as an alternative story to auditors acting independently for their results, and drawing inferences from archival vis‐à‐vis experimental studies. We conclude our discussion by arguing that the investigation by HMSS sets the stage for future research concerning why earnings revisions occur and why auditors and CFO s appear to bear adverse consequences when they do occur.