TY - JOUR
T1 - Audit fees and audit adjustments: evidence from Welsh local authorities
AU - Baylis, Richard M.
AU - Greenwood, Margaret J.
PY - 2016/7/28
Y1 - 2016/7/28
N2 - This paper exploits the availability of pre-audit financial statements to investigate the scale and incidence of audit adjustments and their impact on audit fees in Welsh local authorities. Adjustments to the politically-sensitive general fund, which represent a significant proportion of all adjustments, are associated with increased audit fees. The authors also found that audit adjustments on average result in more conservative reporting of the surplus/deficit and the balance on the general fund, with the number and value of downward adjustments exceeding those of upward movements.
AB - This paper exploits the availability of pre-audit financial statements to investigate the scale and incidence of audit adjustments and their impact on audit fees in Welsh local authorities. Adjustments to the politically-sensitive general fund, which represent a significant proportion of all adjustments, are associated with increased audit fees. The authors also found that audit adjustments on average result in more conservative reporting of the surplus/deficit and the balance on the general fund, with the number and value of downward adjustments exceeding those of upward movements.
UR - http://dx.doi.org/10.1080/09540962.2016.1194083
U2 - 10.1080/09540962.2016.1194083
DO - 10.1080/09540962.2016.1194083
M3 - Article (Academic Journal)
SN - 0954-0962
VL - 36
SP - 357
JO - Public Money & Management
JF - Public Money & Management
IS - 5
ER -