Some audit disclosures may prompt companies to manipulate earnings ...Middle East

Auditor disclosures of client-specific quantitative materiality thresholds, which are required in the United Kingdom but not the United States, could be encouraging some businesses to massage their earnings reports, according to a university study. The study, which appears in the journal Accounting Horizons, examines the relationship between earnings management and auditor materiality threshold disclosures. The researchers, Patricia Wellmeyer and Morton Pincus of the University of California, Irvine, and Lijie Yao of Beijing Jiaotong University, noted that expanded audit report regulations in the U.K. require auditor disclosures of client-specific quantitative materiality thresholds. The P

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