Download or read book Client Relationship Building and Audit Quality written by Joshua Ronen and published by . This book was released on 2019 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of auditor-client relationship-building. Existing literature suggests that quasi-rents rising from long auditor tenure have a negative effect on auditor independence. In contrast to this conventional wisdom, our paper shows a positive effect of quasi-rents resulting from relationship-building on auditor independence. Prohibiting relationship-building takes away this benefit, and increases the likelihood of an auditor accepting an inaccurate, higher report. This is the first study analyzing the impact of client relationship-building initiated by auditors on audit quality.
Download or read book Auditor Client Relationship and Audit Quality written by Suhaib Aamir and published by LAP Lambert Academic Publishing. This book was released on 2011-07 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Different scandals around the globe during the past, in specific during the last decade, have intrigued the stakeholders to question the roles of both auditors and management. But most of the fingers since then have been raised on the role of auditors, because it is the auditors who are entrusted with the responsibility to detect any errors or frauds in the financial reports of the client-firm. Apart from this, the long-term auditor client relationship has been the center of attention in most of the discussions and debates as well. Numerous studies have been conducted by the academic researchers, financial and professional analysts, regulatory authorities and governing bodies, and in some cases by the auditors and the firms as well regarding the effects of long-term auditor-client relationship on audit quality, equity risk premium, financial reports quality, audit pricing etc. These studies provide us with different results, both with the positive and negative associations and effects of long-term auditor-client relationship on the basis of different factors and contexts. Therefore, we would be studying this relationship in between auditors and SME clients.
Download or read book Long Term Client Relationship and Its Effect on Audit Quality written by Diego Adrian Vieira Ferreira and published by . This book was released on 2012 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding Auditor client Relationships written by Gary Kleinman and published by Gary Kleinman. This book was released on 2001 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work is intended to assist researchers, regulators, and practitioners who are interested in the topic of auditor independence. It presents a comprehensive model of the individual, work place, organization, inter-organizational, and organizational field level determinants of the topic.
Download or read book Audit Quality written by Jonas Tritschler and published by Springer Science & Business Media. This book was released on 2013-10-31 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arising from the author’s experience as a practicing CPA, this book is quite different from other research in this field, as it confronts the subject of audit quality from a pragmatic perspective. The first goal of Jonas Tritschler is to develop an audit quality metric on national audit firm level. Financial reporting errors, as detected by the German enforcement institutions during examinations, which subsequently are published in the German Federal Gazette by the involved companies, are the data basis for this measurement. Using the developed audit quality metric, the second goal of this study is to analyze audit quality differences of selected audit firms by comparing their deployed audit input factors such as employee’s competence (ratio of certified professionals to total audit staff), experience of employees (average tenure of employees in years) and client-specific experience (client fluctuation rate). Results indicate a correlation between audit quality according to the developed metric and the operationalized audit input factors mentioned above.
Download or read book Navigating the Auditor client Relationship During Sensitive Events written by Mary Dodgson and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Maintaining a positive auditor-client relationship is critical for audit firms, particularly during sensitive events. For instance, audit firms state in transparency reports that they take steps to minimize disruption during audit partner rotations, yet it is unclear what these actions entail or the potential effects of these actions on auditor independence and audit quality. I use multiple methods to provide insight into these practices and their related effects. First, I interview 20 audit partners to learn about the process by which audit firms manage the auditor-client relationship during sensitive partner rotation events. Interviewees describe how audit firms identify appropriate partner candidates and procedures followed to select and prepare the next lead partner. Respondents also elaborate on firms' ongoing relationship-managing activities, including the assignment of non-decision-making liaisons (often referred to as relationship partners or "RPs") to a subset of engagements to assist in navigating the auditor-client relationship during sensitive events (i.e., in preparation for upcoming partner rotations and when contentious auditor-client issues arise). Second, I conduct an experiment with financial executives to examine the influence that RPs may have on the resolution of contentious auditor-client issues. I also consider how RP influence may vary depending on the extent to which the audit partner and client manager have tried, albeit unsuccessfully, to resolve the issue (i.e., negotiation ripeness). I find that, in a traditional setting in which a RP is not involved, client managers concede less toward an audit partner's more appropriate position when the negotiation has reached a more ripe stage than when the negotiation stage is less ripe. However, I find it is at a more ripe stage that RP intervention is more effective in moving client managers toward a resolution, limiting the risk of seeking alternative methods of resolution that may impair the auditor-client relationship (e.g., issuing a qualified audit opinion). Collectively my findings inform regulators and researchers about the ongoing process by which audit firms manage the auditor-client relationship during sensitive events and how one common approach for managing the auditor-client relationship (i.e., assignment of RPs to a subset of engagements) influences the auditor-client relationship and audit quality.
Download or read book Auditor client relationships written by Ahmed Beloucif and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Integrated Reporting and Audit Quality written by Chiara Demartini and published by Springer. This book was released on 2017-04-13 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the relationship between integrated reporting and audit quality within the European context, presenting empirical evidence and drawing on a broad review of the available literature in order to evaluate the ability of integrated reporting to enhance audit risk assessment. Dedicated sections first elucidate the concepts of integrated reporting and audit quality. The main integrated reporting frameworks are compared, the role of integrated reporting within a firm’s disclosure is examined, and all aspects of audit risk are discussed. The key question of the impacts of integrated reporting on the components of audit risk is then addressed in detail, with reference to empirical findings, their practical implications, and their limitations. The concluding section explores the future of corporate reporting and the development of the next integrated reporting framework and summarizes the insights that the analysis in the book offers into the relationship between integrated reporting and audit quality in the European setting.
Download or read book Auditing and Society written by Wally Smieliauskas and published by Routledge. This book was released on 2020-07-30 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditing has become an essential component in market societies and the need for auditing skills has risen in line with globalization. This textbook provides a comprehensive overview of the role of financial statement auditing in contemporary society, including the auditor’s role in evaluating the financial reporting of an auditee—a topic of central concern in the recent comprehensive review of the auditing profession in the Brydon Report (2019). The experienced authors provide insight into auditing research to help readers understand its function, regulation, and role in theory and practice. With focus on private sector financial statement auditing and its regulation, the book includes perspectives on social theory, history, and the importance of professional standards. The thought-provoking final chapter challenges students to consider the effectiveness of auditing in evaluating increasingly risky and complex accounting estimates involving assumptions about future events. A fundamental approach to auditing theory, this textbook will be useful reading for advanced undergraduate and postgraduate students across business and accounting fields.
Download or read book Affiliated Former Partners on the Audit Committee written by Brant E. Christensen and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Researchers and practitioners have expressed the need to understand better the interactions between audit committees and auditors and how these interactions affect audits. Former partners affiliated with the external auditor and serving on the audit committee are a subset of audit committee members who can affect the audit. Consistent with social identity theory, we find that companies with an affiliated partner on their audit committee are less likely to dismiss the member's former firm than companies without the affiliation. Further, we found improved audit quality and increased effectiveness of auditor effort when affiliated partners serve on the audit committee. Finally, this quality improvement occurs contemporaneously with a reduction in audit fees and time spent on fieldwork, suggesting increased efficiency. Our study provides evidence that affiliated former partners on audit committees extend the tenure of the auditor-client relationship while also improving audit processes and outcomes.
Download or read book Audit Quality Attributes Client Size and Cost of Capital written by Guy Dinesh Fernando and published by . This book was released on 2008 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the effects of audit quality attributes related to the auditor and the auditor-client relationship on the firm's cost of capital. We further examine whether these effects differ according to client size. We focus on two auditor characteristics; auditor size and auditor industry specialization and two auditor-client relationship characteristics; auditor tenure and the auditor's opinion. We use the client firm's cost of capital as a proxy for the degree to which the market values these quality attributes. Auditor size, industry specialization, tenure and type of auditor opinion are important determinants of perceived audit quality. The first three characteristics are negatively related to the cost of capital. We also find that that the client firm's cost of capital increases if the auditor issues any opinion other than a clean opinion. These results are driven by small clients, suggesting audit quality attributes are highly appreciated for smaller clients.
Download or read book Auditqual written by Angus Duff and published by . This book was released on 2004-01-01 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This research report considers service quality and technical quality as components of overall audit quality, and explores their importance to audit firms as a means to help attract and retain high calibre staff as well as to generate sufficient income. It considers the audit expectations gap and service quality and from this develops a model of audit quality based on the existing research literature on the topic. Finally, it examines the external communication and brochures provided for clients by the country's largest audit firms. The research report reflects a combination of documentary research and analysis together with interviews of a sample of auditors, finance directors and fund managers"--p. [i].
Download or read book Client Based Measure of the Audit Office Reputation and Its Association with Audit Fees Earnings Quality and Client s Market Value written by Sharad Asthana and published by . This book was released on 2014 with total page 2 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the findings from marketing and management literature on corporate reputation, we develop a new proxy to measure the audit office reputation and examine the impact of this measure on audit fees and audit quality. We argue that the presence of reputable clients and their tenure with the audit office is an unbiased and strong testimony for audit office reputation. Following this argument, we use the proximity of clients to the S&P 500 Index and Fortune's List of Most Admired Companies, weighted by the tenure of the audit office-client relationship, to estimate our client-based audit office reputation measure (CBAR). For a sample of 3,233 audit firm clients we find that our measure of audit office reputation is positively associated with audit fees and audit quality (proxied by absolute discretionary accruals, meet-or-beat-earnings expectations, and restatements). We also show that the earnings of clients from audit offices with higher CBAR are valued higher, suggesting that the market perceives the reputation of such offices to be higher and the earnings of their clients to be more credible. This research is important since CBAR is a new and readily available measure of audit office quality that provides incremental explanatory power for audit fees and audit quality beyond previously available measures.
Download or read book Developing Knowledge Based Client Relationships written by Ross Dawson and published by Routledge. This book was released on 2012-05-31 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developing Knowledge-Based Client Relationships, Second Edition, shows organizations how to lead their key clients into lasting, profitable, high-value relationships. Building on the powerful, tested principles of knowledge-based client relationships, Ross Dawson provides clear and extremely practical approaches for all professional and knowledge-based firms on how to create unique value for both clients and themselves. Detailed case studies across a wide variety of professional services industries offer valuable insights into world leading practice in the field. He examines key client programs, and how to create deeper knowledge-based relationships through these. He discusses in detail the collaborative technologies available today and how they can be used in client relationships, along with managing portfolios of communications channels. He also discusses firm-wide relationship management, leading relationship teams, and value-based pricing for knowledge-based client relationships. This is done by presenting underlying theoretical framework, a variety of tools for structuring relationships and presenting knowledge to clients, and numerous case studies and examples of firms which have implemented these concepts successfully.
Download or read book What Is the Relationship Between Audit Partner Busyness and Audit Quality written by John Goodwin and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contemporaneous studies generally find a negative relationship between audit partner busyness (APB), measured as the number of clients in an audit partner's portfolio, and audit quality. Their argument is that a busy partner does not devote sufficient time to properly audit his average client. Contrary to these studies, we argue that when busyness is optimally chosen by the partner, in equilibrium, there is no causal relationship between APB and audit quality. Using Australian data for the 1999-2010 period, we show that APB is not reliably linked to audit quality, consistent with this equilibrium theory. We argue that causality can be ascribed to the APB-audit quality relationship when accounting scandals exogenously shocked the Australian audit market during the 2002-04 period and APB likely deviated from optimum levels. Supporting this disequilibrium view, we find that higher APB reduces a partner's propensity to issue first-time going concern opinions during this period. Our evidence highlights the importance of the equilibrium condition in testing empirical associations between audit outcomes and endogenous auditor attributes, and shows that the detrimental effect of APB on audit quality is not as pervasive as contemporaneous studies suggest.
Download or read book Client Auditor Supply Chain Relationships Audit Quality and Audit Pricing written by Karla M. Zehms and published by . This book was released on 2014 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the association between auditors' supply chain knowledge and companies' audit quality and audit pricing. Auditor supply chain knowledge is a specialized understanding of information and processes regarding accounting and auditing issues that relates to both a supplier and its major customer, regardless of industry commonalities, that is particularly useful for understanding complexities associated with the revenue cycle. We find that auditors' supply chain knowledge at the city level is associated with higher audit quality and lower audit fees, compared to companies employing auditors with supply chain knowledge at the national level or employing auditors without supply chain knowledge. Such effects are stronger for supplier companies that derive a high proportion of revenue from their major customers, and when the revenue cycle for the supplier companies is more important. We obtain these results while controlling for the usual determinants of audit quality and fees, along with auditors' industry specialization.
Download or read book All For One written by Andrew Sobel and published by John Wiley & Sons. This book was released on 2009-04-20 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate clients are demanding more value from their external advisors, and consolidating their business around a smaller number of firms. These trends are forcing a variety of service providers—from consulting firms to large banks—to confront a series of difficult challenges: How do we create an ‘all-for-one, one-for-all’ culture in which the whole is greater than the sum-of-the-parts and we succeed in leveraging our global network to deliver value to clients?" How do we mobilize the right people, resources, and ideas—across a multitude of organizational and geographic boundaries—into each and every client relationship?" How do we evolve from a trusted advisor to a trusted partner and build multi-year, institutional relationships? All for One answers these questions with an innovative and comprehensive model for developing enduring, institutional client relationships—what Andrew Sobel refers to as Level 6 Trusted Client Partnerships. It offers readers ten specific strategies that are thoroughly supported by case studies, best practices from leading firms, and implementation tools. The individual professional is principally responsible for five of these strategies, while the firm—the institution—must support and drive the other five. When you successfully execute against all ten of these building blocks, you develop long-term, professional-client partnerships that provide great value to the client and high levels of personal satisfaction and profitability for the service provider.
