Bank Regulation/Supervision and Bank Auditing

被引:1
作者
Ghosh, Al [1 ]
Jarva, Henry [2 ]
Ryan, Stephen G. [3 ]
机构
[1] Univ North Carolina Charlotte, Belk Coll Business, Turner Sch Accountancy, Distinguished Professorship Accounting, Charlotte, NC 28262 USA
[2] Hanken Sch Econ, Dept Accounting & Commercial Law, POB 479, Helsinki 00101, Finland
[3] NYU, Stern Sch Business, Vincent Prof C Ross Accounting, 44 West Fourth St, New York, NY 10012 USA
关键词
Audit quality; Banks; Financial statement reliability; Internal control quality; Nonbanks; G21; G23; G28; M41; M42; INTERNAL CONTROL; DETERMINANTS; REGULATORS; CONSEQUENCES; AUDITORS; SERVICES; RISK;
D O I
10.1080/09638180.2024.2373207
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We investigate how bank regulation and supervision influence banks' internal control quality, banks' financial statement reliability, and the effort expended by bank auditors. Using material weaknesses in internal controls disclosed under Section 404 of the Sarbanes-Oxley Act as the proxy for internal control quality, we find that banks exhibit significantly higher internal control quality than comparable nonbank financial firms. Using restatements of financial statements as the proxy for financial statement reliability, we find that banks' financial reports are more reliable than those of comparable nonbanks. Using audit fees as the proxy for audit effort, we find that auditors expend less effort in audits of banks than in audits of comparable nonbanks. Collectively, our findings suggest that the combination of bank audits and banking regulation/supervision significantly improves banks' internal control quality and financial statement reliability, despite auditors expending less effort in bank audits compared to nonbanks.
引用
收藏
页数:26
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