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dc.contributor.authorChoudhary, P
dc.contributor.authorMerkley, K
dc.contributor.authorSchipper, K
dc.date.accessioned2021-10-13T22:15:19Z
dc.date.available2021-10-13T22:15:19Z
dc.date.issued2021-09-28
dc.identifier.citationChoudhary, P., Merkley, K., & Schipper, K. (2021). Immaterial Error Corrections and Financial Reporting Reliability. Contemporary Accounting Research.en_US
dc.identifier.issn0823-9150
dc.identifier.doi10.1111/1911-3846.12713
dc.identifier.urihttp://hdl.handle.net/10150/662075
dc.description.abstractWe provide large-sample archival evidence on the nature and consequences of errors deemed immaterial to the previously issued financial statements containing the errors (immaterial errors). The incidence of immaterial error corrections has been increasing since about 2004, and these corrections are associated with modestly and discernibly negative share returns that are more negative for income-decreasing corrections and corrections that involve multiple issues. We find that immaterial errors are a leading indicator of poor reporting reliability as measured by future material and immaterial reporting errors, material weaknesses in internal controls, and SEC comment letters. Our findings suggest that immaterial errors provide researchers and investors with a more frequent and less severe indicator of potential audit or financial reporting issues as compared to more extreme reporting problems such as material errors corrected by restatements.en_US
dc.language.isoenen_US
dc.publisherWileyen_US
dc.rights© 2021 Canadian Academic Accounting Association.en_US
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en_US
dc.subjecterror correctionen_US
dc.subjectfinancial reporting qualityen_US
dc.subjectmaterialityen_US
dc.subjectmisstatement correctionen_US
dc.subjectout-of-period adjustmenten_US
dc.subjectrevisionen_US
dc.titleImmaterial Error Corrections and Financial Reporting Reliabilityen_US
dc.typeArticleen_US
dc.identifier.eissn1911-3846
dc.contributor.departmentUniversity of Arizonaen_US
dc.identifier.journalContemporary Accounting Researchen_US
dc.description.note12 month embargo; first published: 07 July 2021en_US
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en_US
dc.eprint.versionFinal accepted manuscripten_US
dc.identifier.pii10.1111/1911-3846.12713
dc.source.journaltitleContemporary Accounting Research


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