{"id":{"repo_id":"unsw","oai_identifier":"oai:unsworks.library.unsw.edu.au:1959.4/59302"},"canonical_url":"https://search.dev.ndltd.org/etd/unsw/oai:unsworks.library.unsw.edu.au:1959.4/59302","repository":{"repo_id":"unsw","name":"University of New South Wales","base_url":"https://unsworks.unsw.edu.au/oai/provider"},"display":{"title":"Financial restatements and auditor quality","abstract":"This thesis examines the association between auditor quality and the likelihood of financial restatements for Australian listed companies. I focus on two types of restatements: error-based restatements, which are financial restatements to correct a prior-period error-based misstatement, and stealth restatements, which are restatements made without qualitative disclosures required by the regulation. I document that 32%, 23% and 1.9% of Australian listed companies made restatements, stealth restatements and error-based restatements respectively in my sample of 1,465 Australian listed companies in the 2012/2013 reporting period. I construct an Error Restatement Model and a Stealth Restatement Model to examine the effects of auditor quality and auditor quality changes on the likelihood of different types of restatements. I find some evidence that prior-period auditor quality, measured by whether an auditor is a Big 4 audit firm, is associated with a lower likelihood of a current-period error-based restatement. However, a change in auditor to a Big 4 audit firm (or to an industry specialist audit firm) is associated with a higher likelihood of an error-based restatement arising from the first year audit engagement. I find evidence that higher auditor quality, measured by whether an auditor is an industry specialist audit firm, is associated with a lower likelihood of a stealth restatement and that a change in auditor increases the likelihood of a stealth restatement, but no evidence that higher quality auditors are more effective at detecting or deterring client restatements without qualitative disclosures in first year audit engagements.","abstract_html":"This thesis examines the association between auditor quality and the likelihood of financial restatements for Australian listed companies. I focus on two types of restatements: error-based restatements, which are financial restatements to correct a prior-period error-based misstatement, and stealth restatements, which are restatements made without qualitative disclosures required by the regulation. I document that 32%, 23% and 1.9% of Australian listed companies made restatements, stealth restatements and error-based restatements respectively in my sample of 1,465 Australian listed companies in the 2012/2013 reporting period. I construct an Error Restatement Model and a Stealth Restatement Model to examine the effects of auditor quality and auditor quality changes on the likelihood of different types of restatements. I find some evidence that prior-period auditor quality, measured by whether an auditor is a Big 4 audit firm, is associated with a lower likelihood of a current-period error-based restatement. However, a change in auditor to a Big 4 audit firm (or to an industry specialist audit firm) is associated with a higher likelihood of an error-based restatement arising from the first year audit engagement. I find evidence that higher auditor quality, measured by whether an auditor is an industry specialist audit firm, is associated with a lower likelihood of a stealth restatement and that a change in auditor increases the likelihood of a stealth restatement, but no evidence that higher quality auditors are more effective at detecting or deterring client restatements without qualitative disclosures in first year audit engagements.","abstract_has_math":false,"creators":["Chiu, Yi-Hsuan"],"institution":"UNSW, Sydney","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2017,"date_issued":"2017","date_published":"2017","updated_at":"2026-07-24T05:31:47Z","subjects":["Financial restatements","Audit"],"languages":["EN"],"rights":["open access","CC BY-NC-ND 3.0","free_to_read"],"rights_urls":["https://purl.org/coar/access_right/c_abf2","https://creativecommons.org/licenses/by-nc-nd/3.0/au/"],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["https://doi.org/10.26190/unsworks/20204"],"render_values":[{"text":"https://doi.org/10.26190/unsworks/20204","href":"https://doi.org/10.26190/unsworks/20204","code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/1959.4/59302","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Chiu, Yi-Hsuan"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2017"]},{"key":"dc:publisher","label":"Institution","values":["UNSW, Sydney"]},{"key":"dc:type","label":"Dc Type","values":["master thesis","http://purl.org/coar/resource_type/c_bdcc"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Financial restatements","Audit"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["EN"]},{"key":"dc:rights","label":"Dc Rights","values":["open access","https://purl.org/coar/access_right/c_abf2","CC BY-NC-ND 3.0","https://creativecommons.org/licenses/by-nc-nd/3.0/au/","free_to_read"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/1959.4/59302","https://unsworks.unsw.edu.au/bitstreams/22963a3d-0075-4c47-96d6-03d18f315bf1/download","https://doi.org/10.26190/unsworks/20204"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["This thesis examines the association between auditor quality and the likelihood of financial restatements for Australian listed companies. I focus on two types of restatements: error-based restatements, which are financial restatements to correct a prior-period error-based misstatement, and stealth restatements, which are restatements made without qualitative disclosures required by the regulation. I document that 32%, 23% and 1.9% of Australian listed companies made restatements, stealth restatements and error-based restatements respectively in my sample of 1,465 Australian listed companies in the 2012/2013 reporting period. I construct an Error Restatement Model and a Stealth Restatement Model to examine the effects of auditor quality and auditor quality changes on the likelihood of different types of restatements. I find some evidence that prior-period auditor quality, measured by whether an auditor is a Big 4 audit firm, is associated with a lower likelihood of a current-period error-based restatement. However, a change in auditor to a Big 4 audit firm (or to an industry specialist audit firm) is associated with a higher likelihood of an error-based restatement arising from the first year audit engagement. I find evidence that higher auditor quality, measured by whether an auditor is an industry specialist audit firm, is associated with a lower likelihood of a stealth restatement and that a change in auditor increases the likelihood of a stealth restatement, but no evidence that higher quality auditors are more effective at detecting or deterring client restatements without qualitative disclosures in first year audit engagements."]},{"key":"dc:format","label":"Dc Format","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Financial restatements and auditor quality"]}]}],"canonical_facts":{"dc:creator":["Chiu, Yi-Hsuan"],"dc:date":["2017"],"dc:description":["This thesis examines the association between auditor quality and the likelihood of financial restatements for Australian listed companies. I focus on two types of restatements: error-based restatements, which are financial restatements to correct a prior-period error-based misstatement, and stealth restatements, which are restatements made without qualitative disclosures required by the regulation. I document that 32%, 23% and 1.9% of Australian listed companies made restatements, stealth restatements and error-based restatements respectively in my sample of 1,465 Australian listed companies in the 2012/2013 reporting period. I construct an Error Restatement Model and a Stealth Restatement Model to examine the effects of auditor quality and auditor quality changes on the likelihood of different types of restatements. I find some evidence that prior-period auditor quality, measured by whether an auditor is a Big 4 audit firm, is associated with a lower likelihood of a current-period error-based restatement. However, a change in auditor to a Big 4 audit firm (or to an industry specialist audit firm) is associated with a higher likelihood of an error-based restatement arising from the first year audit engagement. I find evidence that higher auditor quality, measured by whether an auditor is an industry specialist audit firm, is associated with a lower likelihood of a stealth restatement and that a change in auditor increases the likelihood of a stealth restatement, but no evidence that higher quality auditors are more effective at detecting or deterring client restatements without qualitative disclosures in first year audit engagements."],"dc:format":["application/pdf"],"dc:identifier":["http://hdl.handle.net/1959.4/59302","https://unsworks.unsw.edu.au/bitstreams/22963a3d-0075-4c47-96d6-03d18f315bf1/download","https://doi.org/10.26190/unsworks/20204"],"dc:language":["EN"],"dc:publisher":["UNSW, Sydney"],"dc:rights":["open access","https://purl.org/coar/access_right/c_abf2","CC BY-NC-ND 3.0","https://creativecommons.org/licenses/by-nc-nd/3.0/au/","free_to_read"],"dc:subject":["Financial restatements","Audit"],"dc:title":["Financial restatements and auditor quality"],"dc:type":["master thesis","http://purl.org/coar/resource_type/c_bdcc"]},"updated_at":"2026-07-24T05:31:47Z"}