| Budget Amount *help |
¥3,250,000 (Direct Cost: ¥2,500,000、Indirect Cost: ¥750,000)
Fiscal Year 2011: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2010: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2009: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
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| Research Abstract |
The current study examines how limiting auditor liability affectes audit risk and its components. Limiting auditor liability increases inherent risk, audit quality, and overall audit risk. Further, the current study compares the value relevance of accounting earnings in the conformity case that taxable income must be equal to accounting earnings with that in the decoupling case that taxable income may be different from accounting earnings. The value relevance in the conformity case is greater than that in the decoupling case if the ex ante uncertainty in the unmanaged earnings is sufficiently large or the information asymmetry between the manager and the capital market regarding the manager's compensation scheme is sufficiently small.
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