报告时间：2022年5月31日（星期二）9:30

报告地点：腾讯视频会议681 155 585

报告题目：The Extent of Internal Control Audits and Financial Reporting Quality:Does Company Size Matter?

主讲人：南京审计大学 廖林 副教授

主讲人简介：廖林，南京审计大学会计学院副教授，中国政府审计研究中心国际学术研究与交流部主任，澳大利亚新南威尔士大学(UNSW)会计学博士，澳大利亚注册会计师，入选2020年中国高被引学者。主要研究方向为公司金融、公允价值、审计、企业社会责任等，主要成果发表在The Accounting Review, Journal of Business Ethics、Pacific Basin Finance Journal、British Accounting Review、Accounting and Finance等SSCI英文学术期刊，同时担任AJPT, Journal of Accounting and Public Policy、Journal of Business Ethics、Accounting and Finance、Accounting，Auditing and Accountability Journal等SSCI英文期刊匿名审稿人。从2021年起，担任国际知名SSCI（Q2）期刊《Accounting and Finance》副主编。

内容简介：This study examines the impact of the extent of internal control (IC) audits on financial reporting quality proxied by the likelihood of financial statement misstatements. Using IC audit fees from Chinese companies to proxy for the extent of IC audit effort, we find that increased IC audit fees are associated with lower financial reporting quality. However, such effect only applies to small companies but not large companies. This effect is also stronger for small companies with financial distress. The results are consistent with the argument that auditors of small companies experience increased integration errors and confirmation bias when leveraging costly IC audits in financial statement audits, leading to poor financial reporting quality. We also find when large companies have poor internal control quality, the greater IC audit effort significantly reduces the likelihood of material misstatements, indicating the benefits of IC audits to large companies with poor internal control quality. Overall, these results suggest that it is important to consider company size when evaluating the costs and benefits of IC audits.