Download or read book The Effect of Audit Firm Structure on Audit Fees written by Penpilai Premchun and published by . This book was released on 1998 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of Audit Fees and Audit Firm s Reputation on Audit Quality written by Ammar Qadir Sheikh and published by . This book was released on 2020 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audit quality is viewed as a basic element influencing the dependability of financial statements. The objective of this study is to investigate the impacts of audit firm characteristics, including audit firms' reputation and audit fees on the quality of auditing. We utilized discretionary/irregular accruals serving as a proxy for income manipulation, and audit firms' reputation (Big 4 auditors vs Non-Big 4 auditors), and audit fees are utilized to examine the quality of auditing. A sample comprised of 49 listed firms from the KSE-100 index of Pakistan Stock Exchange (PSX) is selected for the duration of 5 years. The data is evaluated through multiple regression and correlations. The outcomes suggested that audit Fee seems to have a significant and negative effect on the quality of auditing, Audit quality also seems to affect ROA negatively, whereas, audit fee affected ROA positively. Lastly, the Big 4 representation has a negative effect on cash flows, whereas audit quality seems to have an inverse effect. The outcomes indicate that non-Big 4 audit firms in Pakistan perform higher quality of auditing than Big 4 audit firms. In addition to that, the outcome discloses that in exchange of higher audit fees, auditors perform lower quality of audits. The basic job of audit quality has gathered remarkably academic consideration. Though, earlier researches have basically centered on organizations operating in developed nations. Very limited is investigated about the quality of auditing in developing economies, for example, Pakistan. This investigation would increase the predetermined number of researches conducted on the quality of auditing of listed firms in developing nations.

Download or read book Audit Firm Split Up written by Alexandra Lilge and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a game-theoretical model, we examine reasons and driving forces for audit firm split-ups, like the case of EY. In addition, we also analyze the potential consequences of audit firm split-ups on both the audit market and the audit quality. We find that the split-up decision is mainly driven by two aspects, the audit failure probability and spillovers from audit to advisory. As the audit quality suffers from a loss of advisory expertise, on the one hand, but benefits from the reduction of independence problems, the effect on audit quality is ambiguous. Moreover, we show that although combined audit firms can generate returns from advisory, a stand-alone audit firm sometimes offers a lower audit fee.

Download or read book Does Audit Firm Size Matter The Effect of Audit Firm Size Measured by Audit Firm Revenues Number of Offices and Professional Headcounts on Audit Quality and Audit Fees written by Gil S. Bae and published by . This book was released on 2013 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using audit firm size measured by audit firm revenues, the number of offices, and professional headcounts, we find that audit firm size measured as continuous variable is positively associated with engagement-level audit quality proxied by discretionary accruals and modified opinions, and is also positively associated with audit fees. The Big 4 audit firms differ considerably in size and their size also measured by revenues, the number of offices, and professional headcounts is significantly associated with the audit quality and audit fee differences across Big 4 auditors. However, we find only limited evidence of the hypothesized relation between associate-to-partner ratio (i.e., human capital leverage) and audit quality, and find no evidence that associate-to-partner ratio is associated with audit fees.

Download or read book Audit Regulations Audit Market Structure and Financial Reporting Quality written by Christopher Bleibtreu and published by . This book was released on 2021-11-24 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audit Regulations, Audit Market Structure, and Financial Reporting Quality provides a structured overview of the empirical and analytical literature on the effects of audit market regulations. After a short introduction, the monograph is organized as follows. Chapter II addresses the structure of the audit markets of industrialized countries. First presenting an overview of the concentration metrics used to describe the structure of an audit market or a market segment, then providing the empirical findings on audit market concentration at the national level and presenting an overview of the main reasons that led to the currently high degree of concentration. Chapter III summarizes the reasons why regulators worldwide consider a high degree of concentration to be a concern. In particular, it reviews the regulator's assumption that a high degree of concentration inevitably leads to a low degree of competition and to the corresponding effects of low audit quality and high audit fees. It also provides an overview of the empirical findings on the association between concentration and audit quality and fees, respectively. Chapter IV introduces the mandatory audit firm rotation, the prohibition on the joint supply of audit and non-audit services, and joint audits as examples for regulations that are likely to have both incentive and market structure effects. Chapter V summarizes the empirical findings on the effects of these regulations on audit quality and market structure. Chapter VI summarizes models that regard the market structure as given. The results from these models show that the effects of regulations are not straightforward, but depend on various factors related to the auditor, the client, and the legal environment. Chapter VII gives an overview of analytical research that simultaneously considers incentive effects and market structure effects. It also provides a brief overview of industrial organization models that seem suitable to expand the models applied to investigate the effects of audit regulations. Chapter VIII concludes and highlights avenues for future research.

Download or read book The Impact of Market Structure on Audit Price and Quality written by Kimberly Dunn and published by . This book was released on 2013 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the association between U.S. audit market structure and both audit price and quality. The significant consolidation of the largest audit firms and its effect on market structure has raised international concern among policy makers. We address this concern by examining the association between equality of Big4 market shares at the U.S. national-industry level and both audit fees and audit quality. Our results suggest that greater national-industry Big4 market equality is associated with lower audit fees and higher audit quality measured by client restatements. We extend the analysis to the city level and find equality associated with higher fees but little association with quality. We incorporate market concentration as another measure of market structure and find equality better captures the association between market structure and audit fees. National-industry equality also continues to be positively associated with quality despite a significant association between city level concentration and quality. Our results suggest that the equality of audit firm market shares is associated with important market outcomes even in the highly concentrated audit market, and that alternative levels of market aggregation such as the national-industry and city levels provide different insights into the effects of market structure.

Download or read book When Big 4 Dominance is Broken written by Zixuan Lina Li and published by . This book was released on 2018 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2013, audit firm mergers created two “Chinese” audit firms – Ruihua and BDO Lixin – that outranked EY and KPMG to become two of the four largest audit firms in China in terms of total audit revenue. In this thesis, I examine the impact of this change in audit industry structure on the economic behavior, i.e. audit pricing and audit quality, of these two large local audit firms – or Big L – relative to the Big 4 and the other local audit firms. Using a difference-in-differences design, I find that the pre-post change in audit fees for the Big L auditors is significantly higher than that for the Big 4 and the other local audit firms around the mergers. In addition, I find that the Big L firms had a significant improvement in audit quality after the mergers, relative to the Big 4 firms over the same period. That is, holding everything else constant, the Big L had higher propensity to issue modified audit opinions and their clients exhibited improved earnings quality in the post-merger period. In contrast, I find evidence of a decline in audit fees and deterioration of earnings quality for clients of the Big 4 auditors around the mergers. I interpret the results as consistent with a shift in the relative market power among the large audit suppliers in China and the development of brand name reputations by the Big L firms, which provided the ability and incentive for the Big L firms to conduct higher quality audits in the post-merger period. On the other hand, the Big 4 audit firms lost some market power and auditor independence as new large competitors emerged in the industry. This thesis answers calls by Francis (2011) and DeFond and Zhang (2014) for further research on the effects of changes in market structure in the audit industry. Implications for various regulators, including the Ministry of Finance of PRC, the European Commission, and the U.S. SEC, are discussed.

Download or read book An Exploratory Study of the Effects of Product Differentiation and Economies of Scale on External Audit Fees written by Willie Earl Gist and published by . This book was released on 1988 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Audit Firm Industry Specialization on Audit Fees written by Xiu Mao and published by . This book was released on 2007 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study seeks to determine the relationship between industry specialization and audit fees in the U.S. audit market.

Download or read book Hong Kong Auditing written by Ferdinand A. GUL and published by City University of HK Press. This book was released on 2007-07-01 with total page 843 pages. Available in PDF, EPUB and Kindle. Book excerpt: This second edition is thoroughly revised to take into account the new Hong Kong Standards on Quality Control, Auditing, Assurance and Related Services, and the numerous developments of a full range of auditing topics since the previous edition. A major feature of this book is that it boldly draws on economic theories to explain aspects of auditing. Certain general concepts which may be applicable in all aspects of an audit is discussed. Published by City University of Hong Kong Press. 香港城市大學出版社出版。

Download or read book Organizational Form and Audit Pricing written by Hajar El Mouttaqui and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The conventional view in accounting is that diversification increases audit complexity and, in turn, audit fees. Conversely, the coinsurance effect of diversification hypothesis suggests that combining multiple business segments with imperfectly correlated earnings provides a coinsurance effect that could alleviate the adverse impact of several audit fee determinants. Given these opposing views, we examine the impact of organizational form on audit fees and find that diversified firms incur less audit fees than comparable portfolios of stand-alone firms. The negative effect of diversification on audit fees is stronger for Big-N audit firms, consistent with these audit firms benefitting more (suffering less) from the coinsurance (complexity) effect of diversification than non-Big N audit firms. However, the benefits of diversification fade in the presence of financial constraints, consistent with the notion that auditing financially constrained clients that are also diversified entails additional risk. We confirm our results using a battery of sensitivity analyses.

Download or read book Auditing Teams written by Mara Cameran and published by Taylor & Francis. This book was released on 2017-03-31 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent audit failures which have rocked financial markets worldwide have accentuated the need for a better understanding of the link between risk, control and audit quality; as well as emphasising the need to open the "black box" of the ways auditing firms actually function. Reflecting these imperatives, Auditing Teams unravels the organizational and management issues in audit firms that are key to achieving effectiveness in service provision. Specifically, this key research reflects upon the relevance and dynamics of auditing teams and their impact on auditing quality, and specifically responding to the recent claim from regulators which highlights auditing team characteristics as the source of wide variations in quality. By leveraging different perspectives – auditing, management accounting, organization and psychology – to investigate auditing teams and basing on evidence collected from the professional world, this book will provide a unique insight into the role of auditing teams on audit quality. It will be of great interest to scholars and advanced students in auditing, as well as to practitioners and regulators in the field.

Download or read book The Effect of Control Risk Audit Firm Size and Auditor Change on Audit Fees written by Mo Lin Yeung and published by . This book was released on 1999 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Mandatory Audit Firm Rotation on Audit Quality Audit Fees and Audit Market Concentration written by R. Narayanaswamy and published by . This book was released on 2019 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: In India, the government introduced mandatory audit firm rotation following calls to improve audit quality and auditor independence in the wake of the Satyam accounting scandal. The absence of strong institutional mechanisms to prevent and detect audit failure in a timely manner has led the government to require periodical audit firm rotation. Evidence from firms for the years 2014 to 2017 suggests that mandatory audit firm rotation does not appear to have improved audit quality, reduced audit costs and increased audit market competition.

Download or read book Can Audit Fees Inhibit Accounting Misstatements Moderating Effects of Auditor Reputation from Chinese Experience written by Bin Li and published by . This book was released on 2015 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the association between audit fees and accounting misstatements, and test the moderating effect of auditor reputation on this association in China, where auditors' legal liability is essentially weak. We find that current-year audit fees are negatively and significantly associated with the likelihood of current-year financial statement being misstated. This result is consistent with prior work, indicating a negative relation between audit fees and future misstatements in a strong litigation environment such as in the United States. This finding indicates that higher audit fees can reflect audit effort, even in a setting where litigation plays essentially no role. Prior literature suggests that audit firms have reputational incentives; thus, we use auditor irregularities and audit firm rank as proxies for auditor reputation and find that the negative relationship between misstatements and audit fees weaken as auditor reputation decreases. Our results indicate that auditor reputation can negatively moderate the relationship between audit fees and misstatements and is more important in the absence of litigation.

Download or read book The Effect of Mandatory Audit Firm Rotation on Audit Quality and Audit Fees written by Soo Young Kwon and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a unique setting in which mandatory audit firm rotation was required from 2006-2010, and in which both audit fees and audit hours were disclosed (South Korea), this study provides empirical evidence of the economic impact of this policy initiative on audit quality, and the associated implications for audit fees. This study compares both pre- and post-policy implementation and, after the implementation of the policy, mandatory long-tenure versus voluntary short-tenure rotation situations. Where audit firms were mandatorily rotated post-policy, we observe that audit quality (measured as abnormal discretionary accruals) did not significantly change compared with pre-2006 long-tenure audit situations and voluntary post-rotation situations. Audit fees in the post-regulation period for mandatorily rotated engagements are significantly larger than in the pre-regulation period, but are discounted compared to audit fees for post-regulation continuing engagements. We also find that the observed increase in audit fees and audit hours in the post-regulation period extends beyond situations where the audit firm was mandatorily rotated, suggesting that the introduction of mandatory audit firm rotation had a much broader impact than the specific instances of mandatory rotation.

Download or read book Handbook of Research on Digital Crime Cyberspace Security and Information Assurance written by Maria Manuela Cruz-Cunha and published by Information Science Reference. This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book combines the most recent developments in data protection and information communication technology (ICT) law with research surrounding current criminal behaviors in the digital sphere"--