2005 Fiscal Year Final Research Report Summary
The Research about Assurance Effect of Auditing in Disclosure Regulation in the International Aspect
| Project/Area Number |
16530311
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Kansai University |
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Principal Investigator |
MATSUMOTO Yoshinao Kansai University, Faculty of Commerce, Professor, 商学部, 教授 (30219521)
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| Project Period (FY) |
2004 – 2005
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| Keywords | Sarbanes-Oxley Act / SEC / AICPA / Review Engagement / Audit Fee / Expectation Gap / Assurance Level / ISA |
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| Research Abstract |
The regulations of Sarbanes-Oxley (SOX) Act, which was enacted because of accounting scandals including Enron since December 2001 in the U.S., ordered the Securities and Exchange Committee (SEC) to research the other accounting scandals. In this research, I examined details of the U.S. accounting scandals based on cases which investigated by the SEC, and the process changing from Rule-oriented accounting standards to the Purpose-oriented accounting standards. In addition, I examined empirically whether the relation between an audit fee and non-audit fee influenced the auditor's independence. The SEC concerned such relation but and found that such relation did not have any significant influence on the independence.
As another issue that was raised by the SOX Act was "timely disclosure," I examined the influence of quarterly disclosure on Japanese market. Particularly, as I thought that an important matter was how to communicate with management and investor the different assurance level between a review for quarterly report and audit for annual report. As a result of my research, I emphasize a standardization of an engagement letter in order to prevent an expectation gap between management and auditor/ accountant and also standardization of an audit report between auditor/ accountant and investors.
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