Open AccessAudit Reports For Litigation Loss Contingencies
Author(s) -
Sally M. Schultz
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.v9i1.6096
Subject(s) - audit , leverage (statistics) , profitability index , auditor's report , accounting , business , market liquidity , actuarial science , statistics , finance , mathematics
The relationship between the type of audit opinion received by 212 U.S. firms defending pending litigation and auditor, size, leverage, liquidity, and profitability was analyzed using hierarchical loglinear models. Using control and experimental groups which included only firms named as defendants in pending litigation, a model was identified which provided an excellent fit to the data and furnished evidence that size and audit firm alone are sufficient to describe the type of audit opinion received.