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  • Jennifer M Mueller-Phillips
    Impact of Assurance and Assurer’s Professional Affiliation o...
    research summary posted December 3, 2014 by Jennifer M Mueller-Phillips, tagged 12.0 Accountants’ Reports and Reporting, 12.07 Attestation Services, 15.0 International Matters, 15.05 Sustainability Services 
    Title:
    Impact of Assurance and Assurer’s Professional Affiliation on Financial Analysts’ Assessment of Credibility of Corporate Social Responsibility Information
    Practical Implications:

    The findings of this study provide evidence on the benefits of assurance of CSR reports in enhancing credibility. Practice indicates that around the world about 50% of organisations have their stand-alone CSR reports independently assured, and that about 50% of these are assured by members of the accounting profession. This research shows that financial analysts in the U.K., U.S. and Australia will perceive an enhanced credibility of these reports when they are independently assured. However, the evidence also indicates that such benefits are context-specific. Assurance will add more credibility to CSR reports for companies that are facing more significant CSR issues. With regards choice of assurance provider, financial analysts in Australia and U.K. perceive improved credibility associated with independent assurance whether or not the assurer came from the accounting profession. In the U.S. it was only assurance from professional accountants that leads to significantly higher perceived CSR report credibility. This will have implications for organisations in their decision to assure and choice of assurance provider. From the assurance firm’s perspective, in countries where CSR assurance is commonly provided by both accounting profession and other providers outside of the profession, accounting firms may wish to more clearly articulate the benefits of their assurance services compared with those from other assurance providers.

    For more information on this study, please contact Roger Simnett.

    Citation:

    Pflugrath, G., P. Roebuck, and R. Simnett. 2011. Impact of assurance and assurer's professional affiliation on financial analysts' assessment of credibility of corporate social responsibility information. Auditing: A Journal of Practice & Theory 30 (3): 239-254.

  • Jennifer M Mueller-Phillips
    Do Small Firms Benefit from Auditor Attestation of Internal...
    research summary posted October 22, 2013 by Jennifer M Mueller-Phillips, tagged 01.0 Standard Setting, 01.04 Impact of 404, 12.0 Accountants’ Reports and Reporting, 12.07 Attestation Services 
    Title:
    Do Small Firms Benefit from Auditor Attestation of Internal Control Effectiveness?
    Practical Implications:

    This study can inform regulators, investors, and others of the potential consequences of exempting non-accelerated filers from Section 404(b) of SOX. The results of this study support the notion that an auditor’s opinion on the effectiveness of internal control over financial reporting adds value beyond certifications provided by management. Additionally, the results of the study support the notion that investors in small public firms regard auditors’ assessment of the effectiveness of internal controls as adding value via higher revenue quality relative to firms that are not required to submit themselves to additional scrutiny by their auditors. Thus, firms contemplating exiting accelerated status may want to consider that such a move may have an adverse effect on firm valuation.

    Citation:

    Krishnan, G. V., and W. Yu. 2012. Do Small Firms Benefit from Auditor Attestation of Internal Control Effectiveness? Auditing: A Journal of Practice and Theory 31(4): 115-137.

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