Prior studies document that firms having material weaknesses in internal control over financial reporting adjust more discretionary accruals in financial reporting process than other firms. This study examines the influence of industry-specialist audits on accrual management of firms whose...

Prior studies document that firms having material weaknesses in internal control over financial reporting adjust more discretionary accruals in financial reporting process than other firms. This study examines the influence of industry-specialist audits on accrual management behavior of firms...

Organization's environmental uncertainty induces greater variability in reported earnings, and accentuates the information asymmetry between managers and outside stakeholders. Managers have the incentives to reduce such variability via income smoothing and hence reduce information asymmetry for...