Hui Du

Bio: Hui Du is an academic researcher from University of Houston–Clear Lake. The author has contributed to research in topics: Audit & XBRL. The author has an hindex of 10, co-authored 18 publications receiving 355 citations. Previous affiliations of Hui Du include University of Texas–Pan American.

XBRL Mandate: Thousands of Filing Errors and So What?

Abstract: Since the mandate by the U.S. Securities and Exchange Commission (SEC) to begin interactive data reporting in June 2009, according to XBRL Cloud, an XBRL product and service provider, more than 4,000 filing errors have been identified. We examine the overall changing pattern of the errors to understand whether the large number of errors may hamper the transition to interactive data reporting. Using a sample of 4,532 filings that contain 4,260 errors, we document a significant learning curve exhibited by the XBRL filers. Specifically, we find that the number of errors per filing is significantly decreasing when a company files more times, suggesting that the company filers or the filing agents many companies use learn from their experiences and therefore the future filings are improved. Our findings provide evidence to encourage the regulatory body, the filers, and the XBRL technology supporting community to embrace the new disclosure requirement in financial reporting. The significantly decreas...

Do Social Media Matter? Initial Empirical Evidence

Abstract: This paper examines the association between firm performance and social media. Based on a sample of S&P 1500 firms, the study finds that firms with a social media presence are more highly valued by the market and have higher future financial performance. Further analysis indicates that the impact of social media on firm performance varies depending on the social media platform involved. Finally, using a restricted sample of Global 100 firms, the study finds some evidence that a higher level of social media engagement is associated with higher firm performance. Overall, these findings provide consistent evidence of the positive impact of social media technologies on firm performance. Data Availability: All data are available from public sources.

Meeting Challenges and Expectations of Continuous Auditing in the Context of Independent Audits of Financial Statements

Abstract: This paper proposes a continuous auditing model that provides external auditors the opportunity to audit clients continuously or on a more frequent basis while reducing the possibility of compromising auditor independence. The model requires the auditor's system to be separated from the auditee's system so that the two systems do not interfere with each other. The auditor's system must also communicate smoothly and effectively with the auditee's system to continuously process data captured from that system. We show how the new technology using XML (eXtensible Markup Language) and CORBA (Common Object Request Broker Architecture) can help effectively connect the auditor's system to the auditee's system, thereby supporting smooth communication between the two independent systems. We also introduce the concept of continuous auditing cycle, which helps define the engagement period between client and auditor and makes the audit within each cycle continuous.

Is Compensating Audit Committee Members with Stock Options Associated with the Likelihood of Internal Control Weaknesses

Abstract: We examine whether firms with a stock option plan for their audit committee members are more likely to have internal control weaknesses. Using a sample of 486 US firms, we find that firms with a stock option plan for their audit committee members are significantly more likely to report an internal control weakness than firms without such a stock option compensation plan. Our results support a UK government report which indicates that compensating outside directors with stock options may diminish the effectiveness of these directors. Our findings suggest that stock option compensation plans may adversely affect the functioning of a firm's audit committee.

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

Abstract: 1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

The Association Between Accruals Quality and the Characteristics of Accounting Experts and Mix of Expertise on Audit Committees

Abstract: Prior literature suggests a positive relationship between financial reporting quality and the presence of accounting experts on audit committees. This study investigates the association between accruals quality and the characteristics of accounting experts and mix of accounting and non-accounting (finance and supervisory) expertise on audit committees. Using post-SOX data, our results indicate a positive relationship between accruals quality and audit committee accounting experts who are independent, hold fewer multiple directorships, and have lower tenure in their firms. Furthermore, the results suggest that the most positive effect of accounting expertise on accruals quality is achieved when accounting expertise is combined with finance expertise in audit committees. Supervisory expertise, on the other hand, seems to have no incremental impact on the effectiveness of audit committees that include accounting and finance expertise. The findings highlight the contextual nature of accounting expertise in overseeing the quality of financial reporting.

The Association Between Accruals Quality and the Characteristics of Accounting Experts and Mix of Expertise on Audit Committees

Abstract: Prior literature suggests a positive relationship between financial reporting quality and the presence of accounting experts on audit committees. This study investigates the association between accruals quality and the characteristics of accounting experts and mix of accounting and non-accounting (finance and supervisory) expertise on audit committees. Using post-SOX data, our results indicate a positive relationship between accruals quality and audit committee accounting experts who are independent, hold fewer multiple directorships, and have lower tenure in their firms. Furthermore, the results suggest that the most positive effect of accounting expertise on accruals quality is achieved when accounting expertise is combined with finance expertise in audit committees. Supervisory expertise, on the other hand, seems to have no incremental impact on the effectiveness of audit committees that include accounting and finance expertise. The findings highlight the contextual nature of accounting expertise in overseeing the quality of financial reporting.

Corporate Governance Research in Accounting and Auditing: Insights, Practice Implications, and Future Research Directions

Abstract: SUMMARY: Over the past two decades, the corporate governance literature in accounting and auditing has grown rapidly. To better understand this body of work, we discuss 12 recent literature review or meta-analysis papers and summarize selected results (i.e., clusters of papers with new and interesting results) from recent empirical research papers, after reviewing the findings of over 250 studies. Our corporate governance focus is primarily on corporate board and audit committee issues. We discuss the major insights from this literature and the practice implications of these findings. In addition, we identify a number of opportunities for future research. In particular, we make suggestions for: (1) improved research paradigms in corporate governance, (2) extensions of existing research, and (3) new or emerging lines of research.