Ball, Walker and Whittred (1979) reported that companies receiving audit qualifications for non‐compliance with the requirement to depreciate buildings earned higher than expected returns at the time of the release of the qualification. This paper examines the possibility that this result could be due to cash‐flow effects related to the decision not to comply with the depreciation requirement. The results generally support the view that there are cash‐flow effects associated with a company's decision not to depreciate buildings.
|Number of pages||9|
|Publication status||Published - 1 Dec 1983|
- Accountants Reports
- Adverse Opinions (ACC)