Going through amazon 2017 financial statements

On the one hand, it is hypothesized that additional attempt of the auditor will be represented in form of abnormal lag in presenting audit report, which is an effective factor for decreasing the financial restatement probability.

High audit fee may lead to a financial dependency between auditors and their clients, raising serious doubt about the auditor's independence because they may present a more favorable report to keep the customer and gaining a higher fee ( Spathis et al., 2007).ДЇurthermore, there are different views in the accounting literature as for the impact of abnormal auditor's report lag on financial restatement. For this purpose, some scholars analyzed the impact of a complexity of information disclosure, and report lower stock liquidity ( Miller, 2010 Lawrence, 2013), greater return volatility ( Loughran and McDonald, 2014), more frequent stock price crashes ( Kim et al., 2016), more dispersed earnings forecasts ( Lehavy et al., 2011), higher loan interest rates and stricter loan contract terms ( Ertugrul et al., 2017), less favorable credit ratings ( Bonsall and Miller, 2017), intense information asymmetry ( Aymen et al., 2018 Luo et al., 2018) greater audit hours and fees ( Cho et al., 2019 Abernathy et al., 2019 Altass, 2016 Jang and Rho, 2016), longer audit report lag ( Abernathy et al., 2019), greater possibility of receiving going concern opinion (GCO) ( Abernathy et al., 2019), compared with other firms.Дespite the extensive range of audit works and their applications, from the highest national level to the smallest business firm, the determining factors for audit fee are not fully recognized yet. The second group is concerned about other aspects of readability. In this respect, Li (2008) declare that the return and future stock profit can be predicted through the words used by the managers in describing the firm operation. The first group proposes that the readability of financial reports is a contributing factor to the future financial performance of the firm and stock price behavior. In general, the conducted studies investigating the relationship between annual report complication and financial ratios of the firm can be classified into two groups. Hence, law-makers of the capital market, including the Stock and Securities Commission, have always emphasized the significance of readability and understandability of financial reports in preserving the right of shareholders. Given that the important point is usefulness of such information for decision-makers because of their readability. The annual reports of firms have always been among one of the most important resources for decision-making of the capital market practitioners (similar to shareholders, creditors and financial analysts), capital market law-makers and other beneficiaries. Copyright В© 2020, Emerald Publishing Limited

Going through amazon 2017 financial statements