The impact of financial restatement on auditor changes in Malaysia

Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the acti...

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Main Author:	Ooi, Juan Tung
Format:	Thesis
Language:	eng eng
Published:	2024
Subjects:	HD2709-2930.7 Corporations HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/11407/1/s830097_01.pdf https://etd.uum.edu.my/11407/2/s830097_02.pdf
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id	my-uum-etd.11407
record_format	uketd_dc
spelling	my-uum-etd.114072024-10-28T07:04:09Z The impact of financial restatement on auditor changes in Malaysia 2024 Ooi, Juan Tung Abdul Hamid, Fathilatul Zakimi Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy HD2709-2930.7 Corporations HF5667 Professional Ethics. Auditors. Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the actions chosen by auditors and restating companies. However, the decision for auditor changes of restating companies might also be affected by the corporate governance level and auditor’s size. This topic has raised enormous public concerns in Malaysia. Thus, due to the lack of Malaysian studies on this topic, this research aims to examine the impact of the financial restatements, as well as the corporate governance levels and incumbent audit’s firm size of the restating companies, on auditor changes in Malaysia. This study used a sample size of 144 non-financial companies listed in Bursa Malaysia and hand-collected the relevant data from corporate governance and annual reports for the fiscal years 2020 and 2021. The Statistical Package for Social Science (SPSS) software was employed to perform the statistical analyses based on the collected data. By interpreting the results of the analysis, it indicates that the financial restatement, including the corporate governance levels and the size of the audit firm, did not have a significant impact on the auditor changes in Malaysia. Consequently, this study shows that the occurrence of restatements was not a significant factor in the decision to change the auditor in Malaysia. The findings also evince that the level of corporate governance and the size of the audit firm used by the restating companies had no bearing on the decision to make auditor changes. Therefore, it provides insights to Malaysian regulators and financial stakeholders so they can make decisions and develop policies without assuming the auditor will change following the restatement. 2024 Thesis https://etd.uum.edu.my/11407/ https://etd.uum.edu.my/11407/1/s830097_01.pdf text eng 2027-01-31 staffonly https://etd.uum.edu.my/11407/2/s830097_02.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Hamid, Fathilatul Zakimi
topic	HD2709-2930.7 Corporations HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations HD2709-2930.7 Corporations Ooi, Juan Tung The impact of financial restatement on auditor changes in Malaysia
description	Nowadays, restatement cases in Malaysia have increased over time, leading the restating companies and their auditors to lose public trust. Therefore, most of the restating companies and auditors will take some action in order to restore trust with the public. Auditor changes could be one of the actions chosen by auditors and restating companies. However, the decision for auditor changes of restating companies might also be affected by the corporate governance level and auditor’s size. This topic has raised enormous public concerns in Malaysia. Thus, due to the lack of Malaysian studies on this topic, this research aims to examine the impact of the financial restatements, as well as the corporate governance levels and incumbent audit’s firm size of the restating companies, on auditor changes in Malaysia. This study used a sample size of 144 non-financial companies listed in Bursa Malaysia and hand-collected the relevant data from corporate governance and annual reports for the fiscal years 2020 and 2021. The Statistical Package for Social Science (SPSS) software was employed to perform the statistical analyses based on the collected data. By interpreting the results of the analysis, it indicates that the financial restatement, including the corporate governance levels and the size of the audit firm, did not have a significant impact on the auditor changes in Malaysia. Consequently, this study shows that the occurrence of restatements was not a significant factor in the decision to change the auditor in Malaysia. The findings also evince that the level of corporate governance and the size of the audit firm used by the restating companies had no bearing on the decision to make auditor changes. Therefore, it provides insights to Malaysian regulators and financial stakeholders so they can make decisions and develop policies without assuming the auditor will change following the restatement.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Ooi, Juan Tung
author_facet	Ooi, Juan Tung
author_sort	Ooi, Juan Tung
title	The impact of financial restatement on auditor changes in Malaysia
title_short	The impact of financial restatement on auditor changes in Malaysia
title_full	The impact of financial restatement on auditor changes in Malaysia
title_fullStr	The impact of financial restatement on auditor changes in Malaysia
title_full_unstemmed	The impact of financial restatement on auditor changes in Malaysia
title_sort	impact of financial restatement on auditor changes in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2024
url	https://etd.uum.edu.my/11407/1/s830097_01.pdf https://etd.uum.edu.my/11407/2/s830097_02.pdf
_version_	1818647171512139776

The impact of financial restatement on auditor changes in Malaysia

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