Do auditors react to market behaviour?

• Autor(a) principal: Dantas, José Alves
• Data de Publicação: 2023
• Outros Autores: Guimarães, João Lucas Andrade, Santos, Débora Cristina Alves
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Ambiente Contábil
• Texto Completo: https://periodicos.ufrn.br/ambiente/article/view/31067
• topic: audit report; audit opinion; market value; volatility; risk; Audit; Capital market; Audit opinion; relatório de auditoria; opinião de auditoria; valor de mercado; volatilidade; risco; Auditoria; Mercado de capitais; opinião de auditoria; informe de auditoría; opinión de auditoria; valor comercial; volatilidad; riesgo; Auditoría; Mercado de capitales; Opinión de auditoría

Purpose: The study aimed to verify whether auditors react to market information – volatility of stock returns and market value variation – impacting the propensity to issue a modified opinion or incorporation of emphasis paragraphs in the audit report. Methodology: The empirical tests were based on the estimation of Logit regressions, with data from 2009 to 2020 of 338 non-financial companies listed on B3, obtained directly from the CVM website and from the Economatica database. Results: The test results revealed that companies that record greater volatility in stock returns are more likely to receive audit reports with modified opinion and with emphasis paragraphs, suggesting that the auditor perceives this measure of market risk as an indication of audit risk in relation to the company, resulting in greater rigor in their judgments, even as a form of self-protection. On the other hand, no association was contacted between the variation in market value and modified audit opinions or emphasis paragraphs, contrary to expectations that the greater the losses in market value, the greater the probability of issuing a modified opinion by the of the auditors. Contributions of the Study: The empirical evidence fills a gap in the literature on the subject, which generally explores the effects of the content of the audit report on the market, while this study focuses on exploring the inverse relationship - the impact of market information on the work of audit. Additionally, the findings contribute to a better understanding of the audit work, serving as subsidies for professionals in the field and regulators.