Download or read book Questioning the Big 4 Audit Quality Assumption written by Tyrone M. Carlin and published by . This book was released on 2008 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Disruption in the Audit Market written by Krish Bhaskar and published by Routledge. This book was released on 2019-04-16 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focussing on the dominance of the Big Four auditing firms – PwC, EY, Deloitte and KPMG – this concise volume provides an authoritative critical assessment of the state and future of the audit market, currently the subject of much debate and the focus of significant government enquiries. Drawing on extensive research and a vast collection of evidence from interviews with insiders, experts and users, it explores the key issues of audit quality, independence, choice and the growing expectation gap. Just as disruptive technologies are overturning other established sectors, this book explores their impact on accounting, financial reporting and auditing. It questions whether the Big Four-dominated audit market is prepared not only for the inevitable disruption of new technologies, but also the challenges of negative public perceptions, cynicism about regulation and demands for greater transparency. In the context of increasing high-profile corporate failures, this book provides a compelling scrutiny of the industry’s failings and present difficulties, and the impact of future disruption. At this crucial time, it will be of great interest to students, researchers and professionals in accounting and auditing, as well as policy makers and regulators.

Download or read book Singaporean Audit Quality and the Complexity of FRS 36 Disclosures Requirements written by Tyrone M. Carlin and published by . This book was released on 2014 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Theories of audit quality hypothesize higher quality audits associated with larger audit firms. The relationship between size and quality is derived from DeAngelo (1981) which is widely cited in the literature as the basis for pooling big and small auditors when testing for audit quality differences among auditors. This study addresses this concern empirically by investigating the influence of audit quality on the use of the yearly goodwill impairment testing. Specifically, this study focuses on compliance with the requirements under FRS 36 among the Singapore firms whose 2005, 2006 and 2007 financial accounts have been audited by Big-4 or non Big-4 auditors. Consequently, this study constructed an appropriate methodology that able to distinguish audit quality between Big-4 and non Big-4 audit firms and attempt to question the homogenous audit quality assumption. The results of the study, using six analytical frames reveal that compliance level and disclosure quality are systematically failed to comply with even basic elements of the FRS 36 disclosure requirements in relation to goodwill impairment testing.

Download or read book Are All Audits Born Equal written by Tyrone M. Carlin and published by . This book was released on 2007 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: By convention, the quality of an audit is understood to relate to the joint probability that its conduct results in the detection and reporting of material financial statement errors. Early research into this phenomenon suggested a positive relationship between audit firm size and audit quality. This has resulted in a plethora of studies in which a fundamental element of the research design has been to segment data samples into portions relating to large and small audit firms and to test for evidence of audit quality differences apparently associated with the size of the firm conducting the audit. Many such studies have concluded that larger audit firms do indeed provide higher quality audit services. Typically however, the quality of audit services provided by large firms (of which there are very few) has been assumed to be or treated as homogenous. While the collapse of Arthur Andersen lead to some work which questioned this approach, on the whole, the large firm homogenous quality assumption stands. This paper examines the quality of disclosures pertaining to the high risk issue of goodwill impairment testing made by a sample of large Australian listed corporations in the first year after their transition to A-IFRS. All firms in the sample were clients of Big 4 auditors. However, disclosure quality and compliance levels varied substantially, with audit firm identity appearing to explain a substantial proportion of observed cross sectional variation.

Download or read book Journal of Accounting Ethics Public Policy Vol 4 No 1 written by Robert McGee and published by PageFree Publishing, Inc.. This book was released on 2004-10 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: This quarterly jounal publishes scholarly articles in the interdisciplinary areas of accounting, ethics, and public policy.

Download or read book Public Accounting Firms written by United States. General Accounting Office and published by . This book was released on 2003 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Do Big 4 Auditors Provide Higher Audit Quality After Controlling for the Endogenous Choice of Auditor written by John Daniel Eshleman and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent research suggests that Big 4 auditors do not provide higher audit quality than other auditors, after controlling for the endogenous choice of auditor. We re-examine this issue using the incidence of accounting restatements as a measure of audit quality. Using a propensity score matching procedure similar to that used by recent research to control for clients' endogenous choice of auditor, we find that clients of Big 4 audit firms are less likely to subsequently issue an accounting restatement than are clients of other auditors. In additional tests, we find weak evidence that clients of Big 4 auditors are less likely to issue accounting restatements than are clients of Mid-tier auditors (Grant Thornton and BDO Seidman). Taken together, the evidence suggests that Big 4 auditors do perform higher quality audits.

Download or read book Audit Quality Examined One Large Cpa Firm at a Time written by Ross D. Fuerman and published by . This book was released on 2004 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The largest CPA firms have been regarded as quality-differentiated auditors. This has been a prominent assumption of empirical research in accounting and auditing. Yet, prior research has only tested whether the largest CPA firms, in the aggregate, are quality-differentiated auditors. This paper contributes to the audit quality literature by individually examining each of the largest CPA firms. This new approach is timely, given the questions that have been raised concerning Arthur Andersen. Each Big Six CPA firm was compared to the non-Big Six CPA firms, using post-Private Securities Litigation Reform Act of 1995 data. The outcomes of auditors in civil and criminal litigation and administrative proceedings were analyzed using a taxonomy based on the corporate misconduct and economic analysis of legal process literatures. With the exception of Arthur Andersen, each of the Big Six CPA firms was individually found to be a higher quality auditor than the non-Big Six. The null hypothesis of no difference between the outcomes of each of the Big Six firms (except Arthur Andersen) and the non-Big Six was rejected at plt;.05. Since the lawsuits, filed in 1996-1998, were based on allegedly misstated 1995-1997 financial statements, this suggests that a deterioration in the audit quality of Arthur Andersen occurred no later than the mid-1990's. It is empirical evidence of a precursor of the eventual failure of the firm. The research results thus suggest that the Enron audit document destruction obstruction of justice conviction in June 2002 was the culmination of a gradual, firm-wide deterioration that was the cause of the destruction of Arthur Andersen.

Download or read book Big 4 Global Networks written by M. Paulina Kassawat and published by . This book was released on 2015 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Big 4 global networks (Deloitte, Ernst & Young [E&Y], KPMG, and PricewaterhouseCoopers [PwC]) market themselves as providers of worldwide seamless services and consistent audit quality through their members. Under the current environment in which these auditors operate, there are three types of global network members: inspected non-U.S. affiliates (inspected affiliates, hereafter), non-inspected non-U.S. affiliates (non-inspected affiliates, hereafter), and inspected U.S. offices (U.S. offices, hereafter). The recent suspension of the China-based Big 4 affiliates from auditing U.S.-listed companies calls into question whether these global networks can deliver the same level of audit quality across all their members and whether those located in jurisdictions denying access to the Public Company Accounting Oversight Board (PCAOB or Board, hereafter) to conduct inspections may benefit from such inspections. This study examines the effect of being an affiliate and the effect of PCAOB inspections on perceived audit quality. I use earnings response coefficients (ERCs) as a proxy for perceived audit quality. This study finds no evidence that affiliates have lower perceived audit quality than that of the U.S. offices. Additionally, I find no evidence that PCAOB inspected members have higher perceived audit quality than that of the non-inspected members. These results are robust to different measures of unexpected returns, unexpected earnings, and to using alternative approaches to determine when an auditor has been inspected. These findings are relevant because they provide evidence that the Big 4 global networks are delivering on their promise of providing similar audit quality through all their members. Additionally, the lack of results of the effect of PCAOB inspections on audit quality is inconsistent with accountability theory but may suggest that the internal review systems and other internally developed mechanisms by the global networks are as effective as external accountability measures.

Download or read book Improving Healthcare Quality in Europe Characteristics Effectiveness and Implementation of Different Strategies written by OECD and published by OECD Publishing. This book was released on 2019-10-17 with total page 447 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume, developed by the Observatory together with OECD, provides an overall conceptual framework for understanding and applying strategies aimed at improving quality of care. Crucially, it summarizes available evidence on different quality strategies and provides recommendations for their implementation. This book is intended to help policy-makers to understand concepts of quality and to support them to evaluate single strategies and combinations of strategies.

Download or read book Is Audit Quality Different for Big 4 and Mid tier Auditors written by and published by . This book was released on 2009 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Prior research suggests that Big 4 auditors provide higher quality audits by virtue of their large size. Still, the recent reforms mandated by the Sarbanes Oxley Act -- by increasing client and auditor incentives for accurate reporting -- may have narrowed audit quality differences across auditor groups. In this paper, we examine audit quality for Big 4 and Mid-tier auditors during 2003-06 and include clients of other smaller audit firms for comparison purposes. We examine actual audit quality (as proxied by earnings management metrics) as well as perceived audit quality (as proxied by the client- and year-specific eloading and ex ante equity risk premium metrics). We include in our analysis only those Big 4 clients for whom the Mid-tier firms are potentially viable as auditors. Relative to other smaller audit firm clients, we find Big 4 and Mid-tier audit clients to have (1) lower levels of accrual management, (2) higher levels of real earnings management, and (3) higher levels of investor-perceived accruals quality. In each case, we were unable to reject the null that Big 4 and Mid-tier audits are similar. However, we find Big 4 audit clients to have a lower client-specific ex ante equity risk premium relative to both Mid-tier and other smaller audit firm clients. Collectively, our findings indicate that in situations where a Mid-tier auditor is potentially viable, Big 4 clients could utilize a Mid-tier firm without adversely affecting audit quality. Still, the results suggest that Big 4 clients have a lower ex ante cost of equity capital which is likely related to the insurance considerations ("deep pockets") -- rather than the audit quality -- associated with having a Big 4 auditor."

Download or read book International Corporate Reporting written by Pauline Weetman and published by Routledge. This book was released on 2020-02-19 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook provides a comprehensive overview of international corporate reporting which enhances students’ understanding of diversity and convergence in the field. The authors discuss the institutional and cultural context in which international corporate reporting has developed over the years as well as the global reach of IFRS Standards from the IASB throughout and beyond the European Union, into interest groups and emerging economies. Other key elements explored throughout the book include assurance through auditing and corporate governance, narrative reporting, strategic and corporate social responsibility, group accounting, current accounting issues and taxation in corporate reports. Indicative research examples show how the methods used in research papers may be understood and applied. Case studies outline short projects based on corporate cases, with related links to material on corporate websites. Helpful and reliable sources of information and data are identified through hyperlinks to accessible websites. End-of-chapter questions encourage discussion of the main issues. Throughout there is a focus on accountability and the information needs of stakeholders. This new edition of a classic text is fully revised and updated in order to remain essential reading for students of international accounting and corporate reporting globally. The book will be an invaluable resource for postgraduate taught programmes and final-year undergraduate courses in accounting, finance and business studies.

Download or read book Research in Accounting in Emerging Economies written by Shahzad Uddin and published by Emerald Group Publishing. This book was released on 2010-12-02 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Includes research papers that examines various issues including the adoption of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASs), management accounting change in the context of public sector reforms, corporate reporting disclosures, auditing, etcetera.

Download or read book The Behavior of Assurance Professionals written by Olof P. G. Bik and published by Eburon Uitgeverij B.V.. This book was released on 2010 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: The complexity of human behavior challenges our explanatory powers. Yet, in this day and age we desperately try to manage and control the behavior of our corporate citizens through rules, codes, systems and procedures alike. This study is an illustration that true human behavior cannot simply be controlled by (more of) such rules. Instead, it is driven by many psychological, cultural, contextual, and environmental factors. The focus of this study is the influence of cross-national cultural differences in the context of the professional behavior of auditors, based on the central question: Is auditors' professional behavior affected by crossnational cultural differences, and, if so, how? Being based on grounded theory, in part validated within an international accounting organization, this study is the first to provide a more profound, in-depth, and contextualized analysis and understanding of the effect of cross-national cultural differences on the behavior of professionals in general, and that of auditors in particular.

Download or read book Research Handbook on Nonprofit Accounting written by Daniel Tinkelman and published by Edward Elgar Publishing. This book was released on 2023-08-14 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bringing together a diverse team of renowned accounting scholars, this incisive Research Handbook presents a comprehensive evaluation of current research on nonprofit accounting, noting its major accomplishments and outlining opportunities for future study.

Download or read book Big 4 Fee Premium and Audit Quality Latest Evidence from UK Listed Companies written by Domenico Campa and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using the most recent observations (2005-2011) from a sample of UK listed companies, this study investigates whether Big 4 audit firms exhibit a 'fee premium' and, if this is the case, whether the premium is related to the delivery of a better audit service.Univariate tests, multivariate regressions and two methodologies that control for self-selection bias are used to answer the proposed research questions.Findings provide consistent evidence about the existence of an 'audit fee premium' charged by Big 4 firms while they do not highlight any significant relationship between audit quality and type of auditor with respect to the audit quality proxies investigated.This study joins two streams of the extant literature that investigate the existence of a 'Big 4 audit fee premium' and different audit quality among Big 4 and non-Big 4 clients. Evidence supports the concerns raised by the UK House of Lords in 2010 that the concentrated structure of the audit market could be the driver of 'excessive' fees for Big 4 clients as it does not highlight differences in audit quality between Big 4 and non-Big 4 clients.Evidence from this paper might signal the need for legislative intervention to improve the competitiveness of the audit market as its actual concentrated structure is leading to 'excessive' fees for Big 4 clients. Findings might also enhance Big 4 client bargaining power. Analysing only one country, generalizability of the results might be a limitation.

Download or read book How Big 4 Firms Improve Audit Quality written by Limei Che and published by . This book was released on 2019 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies whether and how Big-4 firms provide higher quality audits than non-Big-4 firms. Specifically, we first examine a Big-4 effect and then explore three sources of the Big-4 effect. To test the Big-4 effect, we use a unique dataset of individual audit partners for a large sample of private companies and employ a novel research design exploiting the fact that auditees may follow the auditor who switches affiliation from a non-Big-4 to a Big-4 firm. Thus, we compare audit quality and audit fees of the same partner-auditee pairs before and after the switch. The results show that the Big-4 effect exists in the private-firm segment. More importantly, we find evidence for three sources of the Big-4 effect. First, Big-4 firms are able to recruit non-Big-4 partners who deliver higher audit quality than other non-Big 4 partners in the pre-switch period. Second, enhanced learning has taken place after the switch. Third, the increased audit quality can also be attributed to stronger incentives/monitoring. These are new findings to the literature.