Analysis of the effects of changes in Spanish auditing regulation on audit quality and its differential effect depending on the type of auditor

  1. Cabal-García, Elena 1
  2. De-Andrés-Suarez, Javier 1
  3. Fernández-Méndez, Carlos 1
  1. 1 Universidad de Oviedo
    info

    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

Aldizkaria:
Revista de contabilidad = Spanish accounting review: [RC-SAR]

ISSN: 1138-4891

Argitalpen urtea: 2019

Alea: 22

Zenbakia: 2

Orrialdeak: 171-186

Mota: Artikulua

DOI: 10.6018/RCSAR.382241 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Beste argitalpen batzuk: Revista de contabilidad = Spanish accounting review: [RC-SAR]

Laburpena

The objective of this paper is to provide evidence on the effect of the reforms of the Spanish auditing legislation, enacted in 2002, 2010 and 2015, on audit quality. More specifically, we study whether the reforms had a differential effect depending on the type of auditor. To this end, the auditors were classified according to their size. We analyzed the specific case of non-financial listed Spanish companies which are considered as Public Interest Entities (PIEs). The main results indicate that none of the reforms caused an improvement in financial reporting quality. This could mean that legal reforms per se are not sufficient to achieve the intended objectives in countries with weak legal enforcement, as is the case of Spain. Because of this, it may be necessary to implement mechanisms to encourage auditors to apply the new rules.

Finantzaketari buruzko informazioa

Our sample of study is formed by non-financial companies listed at the Madrid stock Exchange and have been has been gathered from the registers of audited financial reports deposited in the CNMV (Comisión Nacional del Mercado de Valores) by Spanish listed companies. Details on the auditor identity and the outcome of the audit work has been collected from the CNMV repository. The financial data necessary to build our measures of abnormal accruals have been collected from the Bureau Van Djik’s SABI database. The rest of financial information necessary to build the control variables of our estimation models has been obtained from SABI

Finantzatzaile

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