Higher Pay for Auditors Leads to Fewer Restatements
A new study shows that the more accounting firms pay their individual auditors, the fewer restatements its clients have.
The study examines the relationship between audit personnel salaries and office-level audit quality. They measure audit personnel salaries at the Associate, Senior and Manager ranks for Big 4 audit offices from 2004 to 2013 to find that offices that pay lower salaries have a higher percentage of clients that experience restatements.
Learn more HERE.
Check out the study HERE.