Audit Reports: Their Impact on the Loan Decision Process and Outcome: An Experiment

Article Abstract:

This study is based on an experimental methodology and is concerned with the impact on both the lending decision process and decision outcome of Australian bank staff made by the presence of an audit opinion compared to no audit opinion. The study has found that the existence of a qualified audit report does not necessarily have a sufficient impact upon a bank loan decision to alter significantly the decision outcome. This was found to be true when comparing information including a qualification with either information containing a clean audit opinion or no audit information. However, presence of an audit report did play a part in the loan decision process of bankers.

---

Are large auditors more accurate than small auditors?

Article Abstract:

Research looking into the quality of work of large auditing firms compared to small auditing firms found the work of the larger auditors was likely to be more accurate. It was suggested one reason for the higher quality of work from large auditors was the wider variety of expertise within the firm therefore they may offer specialist skills to their clients and have a greater insight into particular industries. A second explanation was the larger auditors were more accurate because of the negative impact on their company of making a mistake.

Accounting, auditing, & bookkeeping, Accounting & Auditing Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Research, Accounting firms, Accounting services, Auditors

---

Similar abstracts:

• Abstracts: Needs of Loan Officers for Accounting Information from Large versus Small Companies. Goodwill and understanding
• Abstracts: The Trends in a Water Authority. Information Exchange. Water regulator tells companies to extend meeting 'selectively.' (Ian Byatt)
• Abstracts: Cars for Partners - Examining the Options. Taxation of Company Cars
• Abstracts: Profit-Sharing and the Finances Acts 1978 to 1983: A Case for a Review of Incentives. part 2 The Evolution of the Harmonizing Provisions of the 1980 and 1981 Companies Acts

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.