On the morning of October 9th, the 20th (181st in total) DUFE·Accounting and Finance Forum of 2023 was held as scheduled on Tencent Meeting Online. The forum invited Assistant Professor Yao Liu from Columbia University. Professor Yao Liu shared an academic paper titled "The Effect of Public Firm Audit Regulation on Private Firm Auditing: Audit-Partner-Level Evidence" with the attending teachers and students.
The paper uses audit adjustment data for public firms and audit-opinion data for private firms, and takes the key audit matters disclosure policy issued in 2016 as an exogenous shock to examine the spillover effect of the promulgation of new audit regulations on the audit activities of private firms, and explores the influencing mechanism. The research results found that the promulgation of new audit regulations for public firms increases the probability of auditors issuing modified audit opinions on private firms. Further research has found that the new audit regulations achieve spillover effect on private firms audit by enhancing knowledge transfer at the auditor level and increasing professional skepticism among auditors. The research in the paper demonstrates that public audit regulations can have a positive spillover on private firms through audit partners. The paper enriches the literature on private firms auditing and policy spillover effects in auditing.
In the interactive session, young teachers and doctoral students from the school exchanged actively, and Professor Liu also actively responded to the questions of teachers and students, creating a strong academic atmosphere on site.
