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Teaching during the coronavirus outbreak

Dear Colleagues, Many of us have faced partial or severe restrictions in the teaching process due to the coronavirus outbreak. In Slovenia, all primary and secondary scools and univeristies are shut down for at least 2 weeks. This period (mid March) for us is a month into the second semester. We faced either a suspension of the academic process with potentially unforeseen consequences (e.g. deadlines, coursework, exams, etc.) or an immediate switch to a fully…
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Does Audit Partner Workload Compression Affect Audit Quality?

By Jun Chen, Wang Dong, Hongling Han, and Nan Zhou As the Panel on Audit Effectiveness acknowledged that time pressures lead to substandard audits, we investigate the effect of audit partner workload compression on audit quality in China. We innovate in two areas by exploiting the unique institutional features of the Chinese capital market: the mandatory auditor signature requirement enables us to calculate workloads at the audit partner level, whereas the uniform December 31 fiscal…
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Auditor Rotation on the FTSE MIB

This analysis was originally posted by Audit Analytics. The FTSE MIB is the benchmark stock index consisting of the 40 most traded companies on the Borsa Italiana. In this post, we’ll examine the auditor tenure and rotation for these companies.  Though Italy formally adopted the EU Audit Reform Directive 2014 policy in 2016, it was nothing new to Italy, which first introduced mandatory auditor rotation in 1975. Since 1975, Italian law has required that public companies rotate audit firms…
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EAA – Research visiting report at UC3M

Baptiste Colas (PhD Student, Laval University, QC, Canada) recently visited Univesidad Carols III de Maddrid as part of the EAA ARC International PhD Visit Scheme. In this blog, he discusses how the visit went. Visiting period: 2019/09/02 to 2019/11/08 (10 weeks) Initially, my main motivation for doing a research visiting at UC3M was to extend my network in Europe and more generally learn about the European universities landscape. Since I was planning to enter the…
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Non-financial reporting news

Dear Friends With this note I want to bring your attention to some developments that are happening in Europe in the field on non-financial reporting, which is the main focus of interest of the SRC. Indeed February has been a very active month. The European Commission launched an online public consultation on the review of the Non-Financial Reporting Directive which was issued in 2014. The SRC will respond to the questionnaire, but for your information…
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EFRAG and Climate Change reporting

The European Financial Reporting Advisory Group (EFRAG) has published the first report of the European Lab on how to improve climate related reporting. See more details in our repository. We would also like to mention the publication of a short video of the European Lab and its activities.       
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Corona virus implications for EAA Annual Congress 2020

The preparations for the EAA Annual Congress of 2020 continue. Given nearly 1,000 early-bird registrations by the end of February, the EAA is fully committed to doing whatever it takes to organize the Congress as planned. Please read here further information: http://www.eaacongress.org/r/default.asp?iID=JDLFLD
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The Value Relevance of Risk Disclosure: An Analysis of the Banking Sector

By Begoña Giner, Alessandra Allini and Annamaria Zampella In this study, we test whether financial risk disclosures required by IFRS 7 and Pillar 3 are value relevant for investors in the European banking sector. The motivation of this research relies upon the concerns expressed by relevant institutions (i.e. the International Monetary Fund). They alerted on the increasingly use of complex instruments without providing relevant and reliable information, which could undermine the stability of financial markets.…
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Auditor Changes Across Europe

This analysis was originally posted by Audit Analytics. In this post, we’ll look at the trends of auditor changes and fees from a selection of European stock indices, specifically the AEX 25, ATX 20, BEL 20, DAX 30, FTSE MIB, IBEX 35, LUX 10, PSI 20, and WIG 20. There were 159 auditor changes recorded from this sample of indices since 2011; 11 of these changes are still pending confirmation from a company’s signed audit…
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Internal auditors’ engagement in risk management

The effect of internal auditors’ engagement in risk management consulting on external auditors’ reliance decision In our paper, published in the European Accounting Review, Marko Čular, Tina Vuko and I investigated whether external auditors rely on the internal auditors if they are involved in consulting services on enterprise risk management (ERM). In recent years, professional bodies have encouraged external auditors to use the work of the internal audit function. To determine whether their work can…