Open AccessSAS 58, Audit Firm Size, And The Incidence Of Uncertainties In Audit Reports: An Empirical Study
Author(s) -
Emmett H. Griner,
Michael T. Dugan,
George G. Klersey
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v10i4.5908
Subject(s) - audit , accounting , business , empirical research , incidence (geometry) , empirical evidence , actuarial science , statistics , mathematics , philosophy , geometry , epistemology
This study develops and investigates two hypotheses: (1) that adoption of SAS 58 should be associated with an increase in the incidence of uncertainties referenced in the audit reports of small audit firms and (2) that there should be no change in the incidence of uncertainties referenced by large audit firms. The empirical results support both hypotheses. The main implication is that standard-setting bodies need to begin giving consideration to the possibility of size-related differences in the effects of changes in auditing standards.