An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

J. Efrim Boritz
University of Waterloo

Guoping Liu
Ryerson University

Abstract: This study investigates firm characteristics that are associated with firms’ voluntary decisions to have their quarterly financial statements reviewed by their auditor, utilizing a sample of Canadian public companies. We find that interim financial statements are more likely to be reviewed for firms with high complexity than for firms with low complexity. We also find that the likelihood of having interim financial statements reviewed increases in firms’ audit assurance and insurance needs. However, firms with high growth opportunities are less likely to be reviewed than those with low growth opportunities, presumably because they may be associated with higher information and litigation risks.

Back to Session Listing

AAA Home Page