Access the full text.
Sign up today, get DeepDyve free for 14 days.
T. Brown, D. Hatherly, J. Innes (1993)
The Review Report: An Empirical InvestigationAccounting and Business Research, 24
Kristian Allee, T. Yohn (2009)
The Demand for Financial Statements in an Unregulated Environment: an Examination of the Production and Use of Financial Statements By Privately-Held Small BusinessesThe Accounting Review, 84
(1991)
Perceived levels of assurance of bankers and CPAs: a comparison
Neung Kim, Rafik Elias (2010)
Attestation Level and Lending Decision by Small Banks Financial Statements , Attestation Level and Lending Decision by Small Banks
B. Foster, R. Garrett, T. Shastri (2016)
Independent accountant’s reports: signaling and early-stage venture fundingManagerial Auditing Journal, 31
W. Shafer, R. Morris (2004)
An Exploratory Study of Auditor Perceptions of Sanction ThreatsResearch in Accounting Regulation, 17
W. Baker, Gary Cunningham (1993)
Effects of Small Business Accounting Bases and Accountant Service Levels on Loan Officer DecisionsJournal of Business Finance & Accounting, 20
K. Pany, Charles Smith (1982)
Auditor Association with Quarterly Financial Information: An Empirical TestJournal of Accounting Research, 20
Jerry Strawser (1994)
An Investigation of the Effect of Accountant Involvement with Forecasts on the Decisions and Perceptions of Commercial LendersJournal of Accounting, Auditing & Finance, 9
R. Davidson, Michael Wright (2000)
The Effect of Auditor Attestation and Tolerance for Ambiguity on Commercial Lending DecisionsJournal of accountancy, 191
(1983)
Audit reports and the loan decision: actions and perceptions
(1981)
Do bankers and CPAs have different views of reports on financial statements?
Peter Schelluch, Annette Baines (1998)
Perceptions of messages conveyed by review and audit reportsAccounting, Auditing & Accountability Journal, 11
(1987)
Messages perceived from audit, review, and compilation reports-extension to more diverse groups
C. Lennox, Jeffrey Pittman (2011)
Voluntary Audits Versus Mandatory AuditsThe Accounting Review, 86
S. Bandyopadhyay, Jere Francis (2009)
The Economic Effect of Differing Levels of Auditor Assurance on Bankers' Lending DecisionsCanadian Journal of Administrative Sciences-revue Canadienne Des Sciences De L Administration, 12
Southwest Business & Economics Journal, 16
Jeffrey Miller, L. Smith (2002)
The Effects of the Level of Assurance, Accounting Firm, Capital Structure, and Bank Size on Bank Lending DecisionsJournal of Accounting, Auditing & Finance, 17
Michael Minnis (2011)
The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. FirmsJournal of Accounting Research, 49
A. Schneider (1995)
Incidence of accounting irregularities: An experiment to compare audit, review, and compilation servicesJournal of Accounting and Public Policy, 14
The purpose of this paper is to examine whether the level of assurance associated with financial statements affects individual investing decisions.Design/methodology/approachA between-subjects behavioral experiment is used with a control condition and three treatment conditions involving different levels of auditor assurance.FindingsAs the level of assurance progresses from none to compilation to review to audit, investors’ perceptions of risk associated with the investment decrease. However, the type of certified public accounting (CPA) firm association did not seem to influence the amounts that individuals were willing to invest.Research limitations/implicationsThe results for the investment scenario in this paper cannot necessarily be generalized to other types of investment scenarios. Also, individuals often obtain more information about an investment prospect than what appeared in this study’s questionnaire. Another limitation is that this study did not have economic incentives such as suffering financial losses from poor investing decisions.Practical implicationsFindings about risk assessments suggest that companies might be willing to pay more for greater levels of CPA firm assurance, but the results pertaining to amounts invested suggest that companies need not consider incurring additional costs to obtain more assurance.Originality/valueNo prior study has unambiguously examined the effects of compilations, reviews and audits on investing decisions. This study explores this issue by conducting an experiment whereby investing judgments are compared across groups who received information about one of four levels of auditor assurance.
Journal of Economic and Administrative Sciences – Emerald Publishing
Published: Apr 17, 2020
Keywords: Assurance; Investing
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.