An examination of the association between interim audits and final audits
Purpose – This study investigates the association between interim audits and final audits. The authors focus on whether interim audits affect the audit time lag and the risk of restatement associated with final audits. Design/methodology/approach – Two regression models are established to empiricall...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2023-01-01
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| Series: | AJAR (Asian Journal of Accounting Research) |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/AJAR-07-2021-0116/full/pdf |
| _version_ | 1797792208661774336 |
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| author | Hsiao-Lun Lin Ai-Ru Yen |
| author_facet | Hsiao-Lun Lin Ai-Ru Yen |
| author_sort | Hsiao-Lun Lin |
| collection | DOAJ |
| description | Purpose – This study investigates the association between interim audits and final audits. The authors focus on whether interim audits affect the audit time lag and the risk of restatement associated with final audits. Design/methodology/approach – Two regression models are established to empirically test if an interim audit helps to reduce the audit time lag and the restatement risk on annual reports based on a sample of Chinese listed firms. Findings – The authors find that performing interim audits helps to reduce the audit time lag. This result suggests that final audits can be completed more efficiently when interim audits are performed during the same period. The authors also find that the decision to audit interim reports is associated with a lower risk of restating annual reports. The lower risk of restatement in turn suggests more effective final audit results. Originality/value – Together, the results from this study demonstrate that interim audits could benefit final audits, which highlight the value and importance of the continuous auditing. |
| first_indexed | 2024-03-13T02:29:52Z |
| format | Article |
| id | doaj.art-251e68b0ea9e4cc39f5f579293f50fdb |
| institution | Directory Open Access Journal |
| issn | 2443-4175 |
| language | English |
| last_indexed | 2024-03-13T02:29:52Z |
| publishDate | 2023-01-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | AJAR (Asian Journal of Accounting Research) |
| spelling | doaj.art-251e68b0ea9e4cc39f5f579293f50fdb2023-06-29T19:28:44ZengEmerald PublishingAJAR (Asian Journal of Accounting Research)2443-41752023-01-018121410.1108/AJAR-07-2021-0116An examination of the association between interim audits and final auditsHsiao-Lun Lin0Ai-Ru Yen1Department of Accountancy, National Taipei University, New Taipei City, TaiwanDepartment of Accounting, Business Law, and Finance, Northeastern Illinois University, Chicago, Illinois, USAPurpose – This study investigates the association between interim audits and final audits. The authors focus on whether interim audits affect the audit time lag and the risk of restatement associated with final audits. Design/methodology/approach – Two regression models are established to empirically test if an interim audit helps to reduce the audit time lag and the restatement risk on annual reports based on a sample of Chinese listed firms. Findings – The authors find that performing interim audits helps to reduce the audit time lag. This result suggests that final audits can be completed more efficiently when interim audits are performed during the same period. The authors also find that the decision to audit interim reports is associated with a lower risk of restating annual reports. The lower risk of restatement in turn suggests more effective final audit results. Originality/value – Together, the results from this study demonstrate that interim audits could benefit final audits, which highlight the value and importance of the continuous auditing.https://www.emerald.com/insight/content/doi/10.1108/AJAR-07-2021-0116/full/pdfInterim auditsAudit time lagRestatement |
| spellingShingle | Hsiao-Lun Lin Ai-Ru Yen An examination of the association between interim audits and final audits AJAR (Asian Journal of Accounting Research) Interim audits Audit time lag Restatement |
| title | An examination of the association between interim audits and final audits |
| title_full | An examination of the association between interim audits and final audits |
| title_fullStr | An examination of the association between interim audits and final audits |
| title_full_unstemmed | An examination of the association between interim audits and final audits |
| title_short | An examination of the association between interim audits and final audits |
| title_sort | examination of the association between interim audits and final audits |
| topic | Interim audits Audit time lag Restatement |
| url | https://www.emerald.com/insight/content/doi/10.1108/AJAR-07-2021-0116/full/pdf |
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