services auditor independence and audit quality

... Specialist 11 Audit Quality and Audit-Related Services 12 The Changing Provision of Audit-Related Services 15 Company, Audit, and Benefit Plan Characteristics .16 The Benefit of Benefit Plans? 18 Auditor ... audit quality (DOL 2015a) Audit Quality and Audit-Related Services Prior research offers two theories to explain the consequences of offering both nonaudit services and financial statement audit ... that Big N auditors are associated with higher audit quality (DeFond and Zhang 2014; Lennox and Pittman 2010; Pittman and Fortin 2004) and are perceived to have higher audit quality (Teoh and Wong

Ngày tải lên: 11/01/2020, 16:59

... Specialist 11 Audit Quality and Audit-Related Services 12 The Changing Provision of Audit-Related Services 15 Company, Audit, and Benefit Plan Characteristics .16 The Benefit of Benefit Plans? 18 Auditor ... audit quality (DOL 2015a) Audit Quality and Audit-Related Services Prior research offers two theories to explain the consequences of offering both nonaudit services and financial statement audit ... that Big N auditors are associated with higher audit quality (DeFond and Zhang 2014; Lennox and Pittman 2010; Pittman and Fortin 2004) and are perceived to have higher audit quality (Teoh and Wong

Ngày tải lên: 13/01/2020, 02:18

... Specialist 11 Audit Quality and Audit-Related Services 12 The Changing Provision of Audit-Related Services 15 Company, Audit, and Benefit Plan Characteristics .16 The Benefit of Benefit Plans? 18 Auditor ... audit quality (DOL 2015a) Audit Quality and Audit-Related Services Prior research offers two theories to explain the consequences of offering both nonaudit services and financial statement audit ... that Big N auditors are associated with higher audit quality (DeFond and Zhang 2014; Lennox and Pittman 2010; Pittman and Fortin 2004) and are perceived to have higher audit quality (Teoh and Wong

Ngày tải lên: 13/04/2020, 09:40

... Second, we examine how auditor type, auditor specialization, and client importance affect the relation between auditor tenure and audit quality and thus the turning point when audit quality starts to ... both short and long tenure are associated with low audit quality, suggesting audit quality first increases with auditor tenure at earlier years and then Trang 132.2.1 Auditor Tenure and Auditor ... climax) 2.2.3 Auditor Tenure and Audit Quality The Learning Effect associated with auditor experience and the Bonding Effect related to auditor independence jointly determines audit quality throughout

Ngày tải lên: 06/01/2015, 19:41

... perception of audit quality, and we observe results consistent with an increase in audit quality perception in the last engagement period Keywords: mandatory rotation, audit firm rotation, audit quality, ... issued to preserve auditor independence and was based on the assumption that such independence could be compromised by a long-term relationship between the auditor and the auditee Therefore, ... concept release "on auditor independence and audit firm rotation" (PCAOB, 2011) in which the Board solicits public comments on the advantages and disadvantages of mandatory audit firm Public

Ngày tải lên: 06/01/2015, 19:41

... risk of reduced audit quality during the first years of an audit firm's tenure (AICPA 1992; Johnson et al 2002; St Pierre and Anderson 1984) and higher audit quality with longer audit firm tenure ... tenure and audit quality are (1) erosion of independence that may arise with the development of personal relationships between an auditor and their client, and (2) deterioration in the audit partner's ... mandatory, we examine the association between audit quality and long audit partner tenure The three measures of audit quality examined are the audi- tor's propensity to issue a going-concern audit

Ngày tải lên: 06/01/2015, 19:41

... public clients audited by an auditor and audit quality In other words, audit quality is likely to improve as the number of public clients audited by an auditor increases On the other hand, the busyness ... providing higher quality audits Larger auditors (i.e., the auditors with more public clients) will lose more quasi-rents if they are perceived as low-quality auditors In other words, larger auditors ... Audited by an Auditor Chinese auditing standards require that two or three audit partners sign an audit report.13 In our sample, most firms’ audit reports are signed by two auditors and only 22

Ngày tải lên: 06/01/2015, 19:42

... items and so on) (Ashton et al., 1989) and auditor-related factors (e.g the extent of audit work, audit staff experience, auditors’ incentive to provide timely report, audit firm tenure and so ... extent of audit work is influenced by auditor business risk, audit complexity and other work-related factors including extraordinary items, net losses and 493 Auditor specialization and audit report ... rotation The opponents of audit firm rotation are concerned about the costs of auditor change They believe that changing auditors may influence audit quality because the auditors lack adequate knowledge

Ngày tải lên: 06/01/2015, 19:42

... pressure on audit quality differs based on auditor size, on client size, or differs with the severity of misstatements Large auditors vs small auditors The Recession might have affected auditors ... whether the effects of fee pressure on audit quality in 2008 differ for large vs small auditors, with size measured by Big 4 vs non-Big 4 auditor type and by auditor office size The results suggest ... 4, and (2) the auditor office size based on local office reve-nue, because recent research finds that large auditor offices have better audit quality (Francis et al., 2013) Big 4 vs non-Big 4 auditors

Ngày tải lên: 06/01/2015, 19:42

... one in four employees annually Auditor turnover results in the loss of auditor expertise and knowledge, and especially the specific knowledge between an auditor and a client However, because a ... 4offices, and the study’s hypothesis in alternative form is: Larger offices of Big 4 accounting firms provide higher quality audits, where higherquality audits are inferred by the auditor’s likelihood ... prior studies: Is Big 4 audit qualityuniform across small and large practice offices? Our prediction is that audits are of higherquality in larger Big 4 offices because auditors in these offices

Ngày tải lên: 06/01/2015, 19:42

... client-auditor relationships alone impede auditor independence Deis and Giroux [1992] reviewed audit quality letters produced by a public audit agency and concluded that audit quality declines as audit ... on Auditors’ Responsibilities [1978]; Division for CPA firms, [1992]) auditor-The Enron scandal and the Andersen audit failure rekindled the issue of mandatory audit firm rotation Mandatory audit ... dataset of audit hours and audit fees to address an important policy question the effect of mandatory auditor change on auditor efforts (auditor cost), audit fees (client cost), and discretionary

Ngày tải lên: 06/01/2015, 19:43

... ••–•• (2013) Effect of Regulatory Changes on Auditor Independence and Audit Quality between the auditor and audit clients and their effects on auditor independence There is presently a lack of empirical ... = audit fees; NAS = auditor- provided non -audit services fees; TOTAL = total of audit and non -audit services fees; FEERATIO = non -audit fees scaled by total audit and non -audit fees; AF_TA = audit ... 2006) To improve auditor independence and audit quality in the joint provision of audit and non -audit services, the Joint Committee of Public Accounts and Audits (JCPAA, 2002) and the ASX Corporate...

Ngày tải lên: 06/01/2015, 19:42

... less the auditor fee, by choosing the proposed accounting report, the auditor fee, and the auditor switching strategy, thereby influencing its auditor s audit quality and attestation, and thus ... predecessor auditor s nor the successor auditor s independence is compromised by dismissal threats and opinion shopping Second, the successor auditor s audit quality exceeds the predecessor auditor s audit ... (an issue of auditor independence ) Audit quality refers to the probability that the auditor will detect misstatements, while auditor independence refers to the probability that the auditor will...

Ngày tải lên: 06/01/2015, 19:43

... opportunities for future research on auditor independence and audit quality Keywords auditor independence, audit quality, client importance, non -audit services, auditor tenure, client affiliation ... audit quality impact of the four threats on the quality of audits and financial reports is determined by their net effect on auditor capabilities and auditor independence Meanwhile, auditors and ... Raghunandan, K (2003) Nonaudit services and shareholder ratification of auditors Auditing: A Journal of Practice & Theory, 22(1), 155-163 Ratzinger-Sakel, N V S (2013) Auditor fees and auditor independence Evidence...

Ngày tải lên: 06/01/2015, 19:44

... Geiger and K Raghunandan, Auditor Tenure and Audit Reporting Failures, Auditing: A Journal of Practice & Theory 21 (2), 67-78 (2002); A Ghosh and D C Moon, Auditor Tenure and Perceptions of Audit Quality, ... A Prencipe, and M Trombetta, Auditor Tenure and Auditor Change: Does Mandatory Rotation Really Improve Audit Quality? , Proceedings of the Annual Meeting and Conference on Teaching and Learning ... enhance auditor independence, objectivity and professional skepticism? • Would audit firm rotation enhance auditor independence, objectivity and professional skepticism? • What are the advantages and...

Ngày tải lên: 29/03/2014, 22:20

... tenureaffects auditorindependence.Proponents of mandatory auditorrotationclaim thatlengthyauditortenureerodes independence, which in turn impairs audit quality Others argue that independenceand audit quality ... they perceive that greaterauditorexpertisefrom longer tenureimbetween perceptions proves independenceand auditquality.We assertthat the relationship of earningsqualityand auditortenureprovidesinsightsinto ... auditor- client tended costs on capital marketparticipants manKeywords: auditortenure;auditorindependence; audit quality; earningsquality; auditorrotation;capitalmarketperceptions datory Data Availability:...

Ngày tải lên: 06/01/2015, 19:42

... the audit report Audit quality, therefore, depends on auditor competence and independence Competence is associated with an auditor s professional skills and independence may be real (the auditor s ... audit quality auditor tenure relation (Vanstraelen, 2000) because auditor tenure can have a positive or negative impact on the two main determinants of audit quality: auditor competence and auditor ... Raghunandan, K (2002) Auditor tenure and audit reporting failures Auditing: A Journal of Practice & Theory, 21(1), 67–78 Ghosh, A., & Moon, D (2005) Auditor tenure and perceptions of audit quality...

Ngày tải lên: 06/01/2015, 19:42

... the auditor- client relationship through auditor designation requirements enhances auditor independence This study investigates the impact of mandated auditor changes on earnings, and thus audit, ... (selective mandatory auditor rotation) improves audit quality DeAngelo (1981a) and Watts and Zimmerman (1981, 1986) define audit quality as the probability that an auditor will both discover and truthfully ... designated auditor will be mandatorily replaced by another designated auditor) Bae et al.’s findings suggest that auditor designation increases auditor conservatism, thus implying improvement in auditor...

Ngày tải lên: 06/01/2015, 19:42

... forecasts and audit quality Apart from the various methods discussed above of identifying conservatism as one dimension of Int J Audit 10: 183–199 (2006) Auditor Conservatism and Audit Quality audit quality, ... into those with Big auditors and others, the relation between accruals and the propensity to issue modified audit reports is confined to Big auditors This is consistent with Big auditors being more ... of the relation between forecast bias and differential audit quality than Clarkson (2000), who Int J Audit 10: 183–199 (2006) Auditor Conservatism and Audit Quality is faced with the potentially...

Ngày tải lên: 06/01/2015, 19:43

... management and the auditor Short auditor tenure may undermine auditor competence since the auditor knows less about a company in the early years of an audit, but it may also undermine auditor independence ... our results PRIOR RESEARCH AND RESEARCH QUESTIONS DeAngelo (1981) notes that audit quality consists of two components: auditor competence and auditor independence Auditor tenure can have a negative ... either Long auditor tenure may increase auditor competence as the auditor can base audit decisions on extensive client knowledge that has developed over time, or it may undermine auditor independence...

Ngày tải lên: 06/01/2015, 19:43