Investors' Response to Revelations of Prior Uncorrected Misstatements
研究了投资者对SAB第108号公告下前期豁免错报披露的反应，发现投资者对此反应负面，且与审计师最初豁免错报及客户重要性相关，表明投资者将其视为审计质量较低的信号。
SUMMARY This study examines investors' response to the disclosure of prior-period waived misstatements under Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in the Current Year. Misstatement correction decisions typically are not observable, and financial statement users have little insight into the disposition of identified misstatements, a dimension of audit and financial statement quality. We find that investors respond negatively to the disclosure of SAB No. 108 misstatements, and this response is associated with the current-period auditor initially waiving the misstatement and client importance. Although SAB No. 108 misstatements were waived under prevailing materiality guidance, our findings suggest that investors interpret SAB No. 108 misstatements as indicating lower perceived audit quality. Data Availability: Data are available from the sources indicated in the text.