Analysts' Cash Flow Forecasts, Audit Effort, and Audit Opinions on Internal Control
研究发现分析师发布现金流预测后，审计费用和审计报告延迟减少，内部控制缺陷披露也减少，表明现金流预测约束了盈余管理并改善了管理会计行为。
Abstract We examine the economic impact of analysts’ cash flow forecasts by looking at how external auditors respond to financial analysts’ issuance of cash flow forecasts. Using a differences‐in‐differences approach, we find that financial analysts’ initiation of cash flow forecasts leads to reduced auditor fees and audit report lags. Moreover, after cash flow forecast initiation, firms report fewer Section 404(b) internal control weakness disclosures. These findings suggest that cash flow forecasts constrain earnings manipulation and improve management accounting behavior, thereby reducing inherent and control risk and strengthening firms’ internal control over financial reporting.