Accounting Professor Co-Authors Study of Corporate Disclosures of Audit Fees
A study co-authored by the University of Baltimore's Mikhail Pevzner, associate professor in the Merrick School of Business, determines that speeding up the process through which corporations must disclose auditing fees could alert investors to possible problems with a company's accounting practices.
Published by the American Accounting Association in its journal Auditing: A Journal of Practice & Theory, the study questions the delay that takes place regarding firms' disclosure of fees that are paid to auditors for their work in accounting.
"Company-specific opacity," the study says, "is greater than perhaps necessary.... Accelerating the mandated corporate disclosure of the audit fee could provide useful information to investors, reducing the severity of negative market reactions when companies announce bad news."
An abstract for the article is available here.
Learn more about Prof. Pevzner and the Merrick School of Business.