Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Do Brand Named Auditors Mitigate Cash Flow Management Post-Sox?

Author(s): Kyeongmin Jeon

This paper examines the relation between named auditors and cash flow management. However, I didn’t find a significant effect of audit firm on cash flow management. It means that brand named auditors, both Big 4 and the second tier public audit firms do not help mitigate cash flow management post-SOX. This is not surprising as auditors alone cannot curb managerial opportunism because other participants such as regulators (i.e., SEC and FASB) have not exerted a concerted effort to provide transparent accounting rules for the SCF model.

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