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| Signing Auditor's Individual Experience and Financial Restatement |
| LIU Xiaoxia1,,LI Minghui2,,YANG Xin3 |
| 1.School of Economics & Management,Nanjing University of Science & Technology
2.Business School, Nanjing University
3.School of Business, Hohai University |
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Abstract This paper measures the general personal experience of the signing accountants by the cumulative number of signed reports and the number of years of signing reports, and then examines its impact on the financial restatement of the client company. The results show that after controlling the factors at the company and firm level, with the improvement of the general experience of the signing accountants, the possibility of restatement of the clients financial report is significantly reduced. Further research shows that the client specific experience (tenure) of the signing accountant also has an inhibitory effect on financial restatement, and the role of general experience is more obvious when the client specific experience is less. In terms of general experience, both industry and non industry experience can help reduce financial restatement. The influence of the general experience of the signing accountant on the financial restatement mainly comes from the reviewing partner. The study also finds that the size of the firm and the gender of the signing accountant will weaken the role of general experience. This study provides empirical evidence of the relationship between the personal experience of signing accountants and corporate financial restatement, and further expands the literature on the relationship between the auditor's personal characteristics and audit quality.
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Received: 27 April 2021
Published: 15 June 2021
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Corresponding Authors:
LI Minghui
E-mail: xdlmh@sina.com
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2021, Vol. 41 
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