...Jonathan Nash; Cristina Bailey Purpose This study aims to provide evidence on how the issuance of a nonreliance restatement affects non-restating clients of the same audit office. Design/methodology/approach To test the effect of restatement issuance on office-level quality, this study runs...

... reporting lag (ARL) and the logistic regression technique to model the probability of restatements. Findings Controlling for audit firm, industry and year-fixed effects, the authors find that a LAF NT filing reduces audit quality and audit timeliness of other clients of the office, as measured...

... quality at the office level. Findings We find that high-quality audit offices are associated with a lower likelihood of client restatement, fewer client abnormal accruals and a higher likelihood of a client receiving a going concern opinion. We partition employees into low, medium and high level...

... the regrowth of sizable consulting practices by the Big 4 influence audit reporting lag and restatement rates? Design/methodology/approach A population of the SEC-registered US audit clients of the Big 4 was used in this study. Longitudinal data on Big 4 audit clients from 2000 through 2009 were analyzed...