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The impact of financial restatement on auditor changes in Malaysia

Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the acti...

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Main Author: Ooi, Juan Tung
Format: Thesis
Language:English
English
Published: 2024
Subjects:
HD2709-2930.7 Corporations
HF5667 Professional Ethics. Auditors.
Online Access:https://etd.uum.edu.my/11407/1/s830097_01.pdf
https://etd.uum.edu.my/11407/2/s830097_02.pdf
https://etd.uum.edu.my/11407/
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spelling my.uum.etd.114072024-10-28T07:04:09Z https://etd.uum.edu.my/11407/ The impact of financial restatement on auditor changes in Malaysia Ooi, Juan Tung HD2709-2930.7 Corporations HF5667 Professional Ethics. Auditors. Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the actions chosen by auditors and restating companies. However, the decision for auditor changes of restating companies might also be affected by the corporate governance level and auditor’s size. This topic has raised enormous public concerns in Malaysia. Thus, due to the lack of Malaysian studies on this topic, this research aims to examine the impact of the financial restatements, as well as the corporate governance levels and incumbent audit’s firm size of the restating companies, on auditor changes in Malaysia. This study used a sample size of 144 non-financial companies listed in Bursa Malaysia and hand-collected the relevant data from corporate governance and annual reports for the fiscal years 2020 and 2021. The Statistical Package for Social Science (SPSS) software was employed to perform the statistical analyses based on the collected data. By interpreting the results of the analysis, it indicates that the financial restatement, including the corporate governance levels and the size of the audit firm, did not have a significant impact on the auditor changes in Malaysia. Consequently, this study shows that the occurrence of restatements was not a significant factor in the decision to change the auditor in Malaysia. The findings also evince that the level of corporate governance and the size of the audit firm used by the restating companies had no bearing on the decision to make auditor changes. Therefore, it provides insights to Malaysian regulators and financial stakeholders so they can make decisions and develop policies without assuming the auditor will change following the restatement. 2024 Thesis NonPeerReviewed text en https://etd.uum.edu.my/11407/1/s830097_01.pdf text en https://etd.uum.edu.my/11407/2/s830097_02.pdf Ooi, Juan Tung (2024) The impact of financial restatement on auditor changes in Malaysia. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HD2709-2930.7 Corporations
HF5667 Professional Ethics. Auditors.
spellingShingle HD2709-2930.7 Corporations
HF5667 Professional Ethics. Auditors.
Ooi, Juan Tung
The impact of financial restatement on auditor changes in Malaysia
description Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the actions chosen by auditors and restating companies. However, the decision for auditor changes of restating companies might also be affected by the corporate governance level and auditor’s size. This topic has raised enormous public concerns in Malaysia. Thus, due to the lack of Malaysian studies on this topic, this research aims to examine the impact of the financial restatements, as well as the corporate governance levels and incumbent audit’s firm size of the restating companies, on auditor changes in Malaysia. This study used a sample size of 144 non-financial companies listed in Bursa Malaysia and hand-collected the relevant data from corporate governance and annual reports for the fiscal years 2020 and 2021. The Statistical Package for Social Science (SPSS) software was employed to perform the statistical analyses based on the collected data. By interpreting the results of the analysis, it indicates that the financial restatement, including the corporate governance levels and the size of the audit firm, did not have a significant impact on the auditor changes in Malaysia. Consequently, this study shows that the occurrence of restatements was not a significant factor in the decision to change the auditor in Malaysia. The findings also evince that the level of corporate governance and the size of the audit firm used by the restating companies had no bearing on the decision to make auditor changes. Therefore, it provides insights to Malaysian regulators and financial stakeholders so they can make decisions and develop policies without assuming the auditor will change following the restatement.
format Thesis
author Ooi, Juan Tung
author_facet Ooi, Juan Tung
author_sort Ooi, Juan Tung
title The impact of financial restatement on auditor changes in Malaysia
title_short The impact of financial restatement on auditor changes in Malaysia
title_full The impact of financial restatement on auditor changes in Malaysia
title_fullStr The impact of financial restatement on auditor changes in Malaysia
title_full_unstemmed The impact of financial restatement on auditor changes in Malaysia
title_sort impact of financial restatement on auditor changes in malaysia
publishDate 2024
url https://etd.uum.edu.my/11407/1/s830097_01.pdf
https://etd.uum.edu.my/11407/2/s830097_02.pdf
https://etd.uum.edu.my/11407/
_version_ 1814938457420595200
score 13.211869

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