Institutional Repository
Technical University of Crete
Technical University of Crete
EN
|
EL
| URI: | http://purl.tuc.gr/dl/dias/D3A22A42-D5AA-4802-AC6D-BBFC85FA3D67 | ||
| Year | 2003 | ||
| Type of Item | Peer-Reviewed Journal Publication | ||
| License |
|
||
| Bibliographic Citation | C. Spathis, M. Doumpos and C. Zopounidis, "Using client performance measures to identify pre-engagement factors associated with qualified audit reports in Greece," Int. J. Account., vol. 38, no. 3, pp. 267-284, 2003. doi:10.1016/S0020-7063(03)00047-5 https://doi.org/10.1016/S0020-7063(03)00047-5 | ||
| Appears in Collections |
The purpose of this paper is to test the extent to which client (corporate) performance measures can be used to enhance the ability to discriminate between the choice of a qualified or unqualified (clean) audit report. Audit firms face the risk of losing the client if they issue a qualification. On the other hand, failing to qualify exposes the auditor to potential lawsuits and loss of reputation. We examined the financial statements, auditors' opinions, and financial statements notes for companies in Greece that received a qualified audit report and for those that received an unqualified audit report. We modeled the auditor's qualification using a multicriteria decision aid classification method (UTADIS—UTilités Additives Discriminates) and compared it with other multivariate statistical techniques such as discriminant and logit analysis. The qualification decision is explained by financial ratios and by nonfinancial information such as the client litigation. The developed models are accurate in classifying the total sample correctly with rates of almost 80%.
Copyright © DIAS 2013
