THE ASSOCIATION BETWEEN AUDITOR RESIGNATION RATES AND EXECUTIVE TURNOVER DUE TO FINANCIAL RESTATEMENT

摘要

This paper investigates whether or not the termination of CEOs and/or CFOs will impactudauditor resignation rates following a restatement. It is predicted that resignation rates will beudlower for firms that terminate their top executives than those that do not terminate their topudexecutives when comparing all cases of restatement. Consequently, the data seems to indicateudthat restatements that include the dismissal of management increase the auditor resignation rates,udmost likely because of the amplified audit risk that is associated with restating firms.udCollectively, the results of this research aim to provide insight into the auditor-clientudrelationship.