File(s) under permanent embargo
Discretionary-accruals models and audit qualifications
journal contribution
posted on 2000-12-01, 00:00 authored by E Bartov, Ferdinand GulFerdinand Gul, J S L TsuiThe primary goal of this study is to evaluate the ability of the Cross-sectional Jones Model and the Cross-sectional Modified Jones Model to detect earnings management vis-à-vis their time-series counterparts by examining the association between discretionary accruals and audit qualifications. These two cross-sectional models have not been formally evaluated by prior research, and their use may offer certain advantages to investors and researchers over their time-series counterparts. A sample of 173 distinct firms with qualified audit reports and a matched-pair control sample with clean audit reports are used. Only the two cross-sectional models are consistently able to detect earnings management. One limitation of this study is that its findings merely indicate the superiority of the cross-sectional models vis-à-vis their time-series counterparts in an audit qualification setting, not validate either the former or the latter.
History
Journal
Journal of accounting and economicsVolume
30Issue
3Pagination
421 - 452Publisher
ElsevierLocation
Amsterdam, The NetherlandsPublisher DOI
ISSN
0165-4101Language
engPublication classification
C Journal article; C1.1 Refereed article in a scholarly journalCopyright notice
2000, ElsevierUsage metrics
Categories
No categories selectedLicence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC