Accounting quality versus auditor choice under strong tax-GAAP conformity: the case of Brazil

Revista Contabilidade & Finanças

Carlos Mello-e-souza¹ 

[1] ,Seatlle University

关键词: Accounting Quality;    Auditor Choice;    Discretionary Accruals;    REFIS;    Tax-To-GAAP Conformity;    Qualidade da Contabilidade;    Escolha do Auditor;    Provisões Contábeis Voluntárias;    REFIS;    Conformidade entre Normas Tributárias e PCGA;   

DOI  :  10.1590/S1519-70772007000100008

来源: SciELO

【 摘 要 】

Brazilian companies with a Big 4 auditor have better accounting quality than those with a local auditor, when accounting quality is measured either by compliance with GAAP or by conservatism. However, the cross-sectional pattern of discretionary accruals-often used to measure accounting quality in other countries-is unrelated to quality in Brazil. In fact, companies with Big 4 auditors tend to recognize income more aggressively than companies with a local auditor. This is the opposite of what happens in other countries and it is consistent with local auditors interpreting the tax code (rather than GAAP) more aggressively than Big 4 auditors, due to the strong linkage that exists between the Brazilian tax code and financial reporting standards.

【 授权许可】

CC BY   
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