2012 Fiscal Year Final Research Report
AUDITOR'S JUDGMENTS UNDER PRINCIPLE-BASED ACCOUNTING STANDARDS-Evidence from EU countries
| Project/Area Number |
23730425
|
|---|
| Research Category |
Grant-in-Aid for Young Scientists (B)
|
| Allocation Type | Multi-year Fund |
|---|
| Research Field |
Accounting
|
|---|
| Research Institution | Tohoku University |
|---|
Principal Investigator |
INOKUMA Hiroko 東北大学, 大学院・経済学研究科, 准教授 (30596416)
|
|---|
| Project Period (FY) |
2011 – 2012
|
| Keywords | 監査人の判断 / 国際財務報告基準 / IFRS / 原則主義 / 細則主義 |
|---|
| Research Abstract |
When independent auditors make judgments under principle-based accounting standards, they tend to be risk-averse in order to avoid the high risk of litigation. Thus, to prevent the gap between the judgments of audit firms and those of individual auditors from widening, auditors deploy certain coping processes. This approach implies that auditors face larger room for discretion as well as greater responsibility in terms of making a professional judgment. In such a circumstance, this study shows that when standards change auditors prefer to rely on existing accounting rules, each auditor's own rules and standards, and shared practices in order to avoid higher audit risks.
|
