When companies fire their auditor in the second half of their financial year, or after the year ends when auditors have begun their fieldwork, the chance of a future restatement is 40% higher compared with companies that haven't switched auditors, the study found:

 

1) Why does the chance of a future restatement increase when auditors are fired late in the fiscal year? 

 

2) Why do companies provide little information about the reasons that the company fired their auditor?