报告题目：The Consequences of Low-Quality Audits on Individual Auditors: A Large-Sample Analysis

报告人：Jade Huayu Chen 陈华予

报告时间：2024年6月28日（周五）10:00-11:30

报告地点：劝学楼245

主办单位：东北财经大学会计学院 辽宁省资本市场财务与会计研究生创新与学术交流中心

【报告摘要】

We investigate the impact of an Accounting and Auditing Enforcement Release (AAER) by the Securities and Exchange Commission on individual auditors’ career prospects, including their exit opportunities from an audit office and the quality of their subsequent jobs. We propose that a stigmatization effect occurs when the tarnished reputation of an audit office, resulting from low-quality audit incidents, diminishes its auditors’ competitiveness in the job market. Utilizing a large sample of 66,962 unique individual auditors from 2005 to 2019 and a generalized difference-in-differences framework with staggered treatment, we find a decreased likelihood of auditor departure following an AAER in an audit office. This decline occurs even when the office reduces salaries following an AAER, supporting the notion that auditors’ exit opportunities diminish after an AAER. For auditors who do leave an audit office following an AAER, we find they receive lower salary levels and have a lower likelihood of joining a reputable firm, such as a U.S. listed firm, an internationally listed firm, an S&P 500 firm, or a Fortune 500 firm, compared to those who leave an audit office unaffected by an AAER. Cross-sectionally, the impact is less pronounced in larger audit offices and more salient for AAERs that receive greater media coverage. Overall, this study highlights the labor implications of low-quality audits and calls for audit firms to consider their audit personnel as important stakeholders when formulating strategies to address reputation damage following an audit failure.

【报告人简介】

陈华予，美国洛约拉马利蒙特大学（Loyola Marymount University）会计学助理教授，亚利桑那大学会计学博士。她的主要研究兴趣包括事务所内部控制及人力资本管理对审计师行为和审计质量的影响、审计对企业披露决策的影响等。陈教授的研究成果发表于Journal of Accounting Research、Auditing: A Journal of Practice and Theory等国际顶级会计期刊，并于2022年获得美国会计学会年会审计分会的最佳实证论文奖。此外，她还担任了多家国际顶级期刊的匿名审稿人。

【特别提醒】

未经论文作者和主办方允许，严禁将讲座内容录制并公开传播，违者将有可能被追究法律责任。