Audit Knowledge and Accounting Conservatism: A Case of Executives’ Vocational Learning and Application
Bin Li 1  
Muze Peng 1
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School of Economics and Management, Beijing University of Chemical Technology, Chaoyang District, Beijing 100029, P.R. China
Bin Li   

School of Economics and Management, Beijing University of Chemical Technology No.15 Bei-san-huan Dong-lu, Chaoyang District, Beijing 100029, P.R. China
Online publish date: 2017-08-23
Publish date: 2017-08-23
EURASIA J. Math., Sci Tech. Ed 2017;13(9):6101–6112
This study examines the relation of audit knowledge and accounting conservatism based on the case of executives’ vocational learning and application. The empirical results reveal the evidence of a negative relation between executives’ audit knowledge and accounting conservatism. Further analysis indicates that the impact of executives’ audit knowledge on accounting conservatism is only robust in companies without CEO duality. The results imply that companies with executives who have audit knowledge may adopt aggressive accounting policy and reduce the accounting conservatism of financial reports.
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