What question did this study set out to answer?

The research aims to examine the relationship between security risk and audit opinion quality among publicly held companies.

Comparability in the Application of Reporting Standards: Some Further Evidence.

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Survey analyzes audit risk and opinion disparities in public companies, indicating notable comparability across major firms.

The research aims to examine the relationship between security risk and audit opinion quality among publicly held companies.
Surveyed annual reports from 1972 to 1975 of publicly held companies with over $15 million in assets.
Analyzed data from approximately 3400 companies.
Tested three hypotheses related to audit risk and audit opinions.
Systematic security risk is linked to the likelihood of receiving a qualified audit opinion.
Audit risk is not uniformly distributed across major auditing firms.
Evidence shows comparability in qualified audit opinion rates across the Big Eight CPA firms.

Shank et al. (1978) studied this question.

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