IDEAS home Printed from https://ideas.repec.org/a/eee/jiaata/v54y2024ics1061951824000028.html
   My bibliography  Save this article

Regulatory investigations, media coverage, and audit opinions

Author

Listed:
  • Li, Xuelian
  • Dong, Liang
  • Kot, Hung Wan
  • Liu, Ming

Abstract

After an investigation of an audit engagement is announced, does media coverage of the investigation affect the involved individual auditor’s behaviors in his or her other non-investigated engagements? We examine this question using a sample of Chinese firms. We find that an individual auditor is more likely to issue modified audit opinions in non-investigated engagements if the investigation attracts a high level of media coverage. This augmenting effect of media coverage exists only when the non-investigated firm has an opaque information environment or a relatively high level of earnings management, when the individual auditor is the review auditor or a non-busy auditor, and when the news comes from an opinion leader. Our results suggest that the media can play an effective role in broadening the sphere of influence of regulatory actions.

Suggested Citation

  • Li, Xuelian & Dong, Liang & Kot, Hung Wan & Liu, Ming, 2024. "Regulatory investigations, media coverage, and audit opinions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:jiaata:v:54:y:2024:i:c:s1061951824000028
    DOI: 10.1016/j.intaccaudtax.2024.100596
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1061951824000028
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intaccaudtax.2024.100596?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jiaata:v:54:y:2024:i:c:s1061951824000028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-international-accounting-auditing-and-taxation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.