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Abstract

Our paper examines whether the regulation reform enacted by the 2010 Dodd-Frank Act was successful in improving the prediction of qualified auditor opinions. Information was compiled on 47 randomly selected industries from 2006 to 2009 and from 2011 to 2012, pre- and post-Act periods. A logit model was developed with the dependent variable indicating whether the firm received a qualified opinion and with the independen tvariables including publicly available financial and stock return variables, and using Altman’s Z-score. The findings of this project shed light on the benefits of the Dodd-Frank Act.

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