THE ASSOCIATION BETWEEN AUDITOR RESIGNATION RATES AND EXECUTIVE TURNOVER DUE TO FINANCIAL RESTATEMENT
AuthorFRANCISCO, HEATHER LYNNE
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PublisherThe University of Arizona.
RightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
AbstractThis paper investigates whether or not the termination of CEOs and/or CFOs will impact auditor resignation rates following a restatement. It is predicted that resignation rates will be lower for firms that terminate their top executives than those that do not terminate their top executives when comparing all cases of restatement. Consequently, the data seems to indicate that restatements that include the dismissal of management increase the auditor resignation rates, most likely because of the amplified audit risk that is associated with restating firms. Collectively, the results of this research aim to provide insight into the auditor-client relationship.
Degree ProgramHonors College