Type of CPA Firm Association with Financial Statements and Commercial Lending Judgments

摘要

This study examines whether the level of Certified Public Accounting(CPA)firm assurance associated with financial statements affects commercial lending decisions.A between-subjects behavioral experiment is used with three conditions involving different levels of CPA firm assurance—compilations,reviews,and audits.Findings indicate that neither the lenders’risk assessments of loan applicants nor their elicited probabilities of granting credit differed among the three levels of CPA firm assurance.