Download or read book The Effects of Firm Wide and Office Level Industry Expertise on Audit Pricing written by Andrew Ferguson and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the role of auditor industry expertise in the pricing of Big 5 audits in Australia. We test if the audit market prices an auditor's firm-wide industry expertise, or alternatively if the audit market only prices office-level expertise in those specific cities where the auditor is the industry leader. We document that there is an average premium of 24 percent associated with industry expertise when the auditor is both the city-specific industry leader and one of the top two firms nationally in the industry. However, the top two firms nationally do not earn a premium in cities where they are not city leaders. We further document that national leadership rankings are in fact driven by the specific offices where accounting firms are city leaders. Thus the overall evidence supports that the market perception and pricing of industry expertise in Australia is primarily based on office-level industry leadership in city-specific audit markets.
Download or read book Is the Effect of Industry Expertise on Audit Pricing an Office Level Or a Partner Level Phenomenon written by John Goodwin and published by . This book was released on 2014 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Several studies report an audit fee premium for auditor industry expertise measured at the office level. We extend this line of research by examining whether there is a fee premium for auditor industry expertise measured at the partner level. Using Australian data, we show that the coefficient for partner-level industry expertise is highly significant and economically important. This is consistent with industry knowledge or expertise residing in the human capital of individual engagement partners. Inconsistent with prior research, we show that there is no auditor industry expertise fee premium at the audit office level when expertise at the partner level is controlled for. Consistent with prior research, we find little evidence of a fee premium at the national level. In sum, our results show that the auditor industry expertise fee premium is mainly a partner-level phenomenon, casting doubt on the belief that industry knowledge or expertise is distributed across engagement partners within an audit office.
Download or read book Partner Industry Specialization and Audit Pricing in the United Kingdom written by Khairul Mohd Kharuddin and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the effects of audit partner industry specialization on audit pricing in the UK market. The mandatory disclosure of the name of the engagement partner in the auditor reports of UK public listed companies took effect from April 2008. Given that the identity of the audit partner is now observable to users of financial statements, it can be argued that there may be an incentive for partner-level differentiation in auditing products, and hence, audit quality. This research examines whether auditor industry expertise in the UK is driven by firm, office, or partner level expertise. The fee premium observed in the study is a joint product of firm and partner level of industry expertise with the highest premium occurring when the client is also audited by an industry leading partner. This finding lends support to the argument that industry expertise is uniquely attributable to the individual audit partner's human capital in terms of their knowledge and experience from leading audit engagements in a particular industry. It also provides evidence that some fee premiums earned by audit firms and documented in prior literature are most probably the product of the individual audit partner's expertise. Full paper available at https://doi.org/10.1016/j.intaccaudtax.2019.05.005.
Download or read book Accounting firm consolidation selected large public company views on audit fees quality independence and choice written by and published by DIANE Publishing. This book was released on with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Audit Office Size Audit Quality and Audit Pricing written by Jong-Hag Choi and published by . This book was released on 2013 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a large sample of U.S. audit client firms over the period 2000-2005, this paper investigates whether and how the size of a local practice office within an audit firm (henceforth, office size) is a significant, engagement-specific factor determining audit quality and audit fees over and beyond audit firm size at the national level and auditor industry leadership at the city or office level. For our empirical tests, audit quality is measured by unsigned abnormal accruals, and the office size is measured in two different ways: one based on the number of audit clients in each office and the other based on a total of audit fees earned by each office. Our results show that the office size has significantly positive relations with both audit quality and audit fees even after controlling for national-level audit firm size and office-level industry expertise. These positive relations support the view that large local offices provide higher-quality audits, compared with small local offices and that such quality differences are priced in the market for audit services.
Download or read book Auditing Trust and Governance written by Reiner Quick and published by Routledge. This book was released on 2007-10-31 with total page 381 pages. Available in PDF, EPUB and Kindle. Book excerpt: The reputation of corporate reporting has been in crisis. Trust in the process of financial accounting and auditing has been undermined by a series of high profile scandals involving major corporations, including Enron, Parmalat, Ahold, and Worldcom. In response, regulators and practitioners world-wide have put forward a series of initiatives to re
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 Audit Quality on the Relationship Between Audit Committee Effectiveness and Financial Reporting Quality written by Johanna Miettinen and published by University of Vaasa. This book was released on 2008 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tiivistelmä: Tilintarkastuksen laadun vaikutus tarkastusvaliokunnan tehokkuuden ja taloudellisen tiedon laadun väliseen suhteeseen.
Download or read book Auditor Specialization Auditor Dominance and Audit Fees written by Steven F. Cahan and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A report issued by the U.S. General Accounting Office (GAO) in 2003 identified auditors' industry expertise as a critical factor for firms choosing an auditor, and highlighted the rather extreme levels of auditor concentration in some industries. We posit that the investment opportunity set (IOS) plays a fundamental role in determining whether an industry is an attractive target for auditor specialization. When industry-specific IOS is high, specialist auditors make costly investments in industry-specific knowledge, allowing them to offer a differentiated product and to create entry barriers for other audit firms. When the IOS of firms within an industry is relatively homogeneous, auditors can transfer such knowledge across clients in the industry more easily, resulting in cost savings and scale economies. However, greater homogeneity of IOS in an industry can also increase a client's aversion to sharing an auditor with its competitors because of concerns about transfers of proprietary information, suggesting that industries with relatively homogeneous IOS are less likely to be dominated by a single auditor. We show that auditor concentration in an industry relates positively to both the level and homogeneity of IOS in the industry, while auditor dominance relates negatively to industry IOS homogeneity. Further, we examine the effects of industry IOS on audit pricing.
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 Business Under Crisis Volume I written by Demetris Vrontis and published by Springer Nature. This book was released on 2022-01-21 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines businesses under crisis conditions through a composition of contextual accounts. The Editors argue that crises are transformative, evolutionary and even revolutionary in the development of organizations, industries and markets. Moreover, crises reform the context in which organizations operate, including customers and their behaviour. As such, they need to be viewed as conduits to change, accelerators of evolution and catalysts of innovation in organizations. Emphasising the importance of ‘context’ and its complexities, the book argues that for crisis, as a concept and notion, context is crucial to any understanding of the meaning that should or could be attached to it. Drawing on different types of changes and crises that substantially affect business, including economic, technological, political, and environmental, chapters Bringing together scientific research and case studies on contextual transformations, the book provides a balanced selection of works across business disciplines, including management, strategy, marketing and finance as well as geographic regions, market types and industries. The book examines the context of crises, its indicators and triggers, and encompasses topics such as Artificial Intelligence, e-mobility, changes in consumption patterns, militancy and the impact of pandemics.
Download or read book Research in Accounting Regulation written by Gary Previts and published by Elsevier. This book was released on 2004-09-17 with total page 347 pages. Available in PDF, EPUB and Kindle. Book excerpt: The scope of service provided by professional accountants is influenced by legislation and case law as well as the dictates of a variety of government and private sector agencies: including State Boards of Accountancy, Academic Accreditation Bodies, the United States Securities and Exchange Commission, the Public Company Accounting Oversight Board, independent standard setting bodies such as the Federal Accounting Standards Advisory Board (US), the Financial Accounting Standards Board (US), the International Accounting Standards Board and self-regulatory organizations such as State Societies of CPA and the American Institute of Certified Public Accountants. There are equivalent and emerging local international bodies that exist in most developed countries. It is important for academics, students, practitioners, regulators and researchers to consider, study and understand the role and relationship of such bodies with the practice and content of our discipline.Research in Accounting Regulation is a refereed annual serial that seeks to publish high quality manuscripts, which address regulatory issues and policy affecting the practice of accountancy, broadly defined. Topics of interest include research based on: 1) Self-regulatory activities. 2) Case law and litigation. 3) Governmental and quasi-governmental regulation. 4) The economics of regulation, including modelling.This research series aims to encourage the submission of original empirical, behavioural or applied research manuscripts that consider strategic and policy implications for regulation, regulatory models and markets. It is intended for individual researchers, practitioners, regulators and students of accountancy who desire to increase their understanding of the regulation of accountancy.
Download or read book Ethics and Auditing written by Tom Campbell and published by ANU E Press. This book was released on 2005-06-01 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ethics and Auditing examines ethical challenges exposed by recent accounting and auditing 'lapses' through a study of interconnected moral, legal and accounting issues. The book aims to engage a broad readership in the discussion of audit failure and reform. With its range of intellectual and practical perspectives, Ethics and Auditing provides critical analyses of auditor independence, conflicts of interest, self-regulation, the setting and enforcing of auditing standards, and ethics education.
Download or read book Big 4 Audit Fee Premiums for National and City Specific Industry Leadership in the United Kingdom written by Khairul Mohd Kharuddin and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relationship between Big 4 auditor industry specialisation and audit pricing in the U.K. in a period of many changes having taken place in the market for audit services. Using a large dataset between 2004 and 2011, our empirical results show a significantly higher fee premium for the Big 4 firms who are national industry leaders as compared to city-specific industry leaders, and that the fee premium for industry leadership is only earned by the city-specific industry leaders if and when they are also the national leaders. Neither the national nor city level industry leadership alone is priced anymore in the U.K. audit market. These findings hold for the pre- and the post-GFC period only and for a number of additional analyses. The evidence suggests that the Big 4 industry leadership in the U.K. has moved away from the previously documented premium for the Big 4 city-specific industry leadership alone, and is now driven solely by the joint Big 4 industry expertise at the national and city-specific levels concurrently. The study's results indicate that there is a progression from city-specific industry expertise to national-specific industry expertise, and they imply that there has been an improvement in the sharing and transferability of industry knowledge and expertise among the city offices of the Big 4 firms in the U.K. in the period of investigation.
Download or read book The Multi level Perspectives Of Agribusiness written by Walter Amedzro St-hilaire and published by World Scientific. This book was released on 2018-05-25 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt: What is the business configurations in agribusiness system? Is not the power likely to focus on a restricted number of big manufacturers, and on a much more limited number of distributors? How to design the future role of the SME and producers? The book identifies the challenges of modern agribusiness in their globalities. The author anticipates stakeholder strategies and addresses socio-economic, political and management challenges: the changing environment of Agribusiness, the sectoral structure, challenges, and the requirements for successful execution of Agriproduction or changing strategies for existing the food distributors, as well as provides some recommendations.Globally, The Multi-Level Perspectives of Agribusiness is a guide to sectoral perspectives knowledge for the future leaders of Agribusiness. It brings us to understand that, the attraction of investors is not due to the typical averages of the sector, but to the characteristics of its' specific actors. The winners are the well-informed companies in this sector, which the Competitive Intelligence Approach and Industrial Planning make the difference.
Download or read book Value Based Management in an Open Economy written by Walter Amedzro St-Hilaire and published by CRC Press. This book was released on 2022-10-17 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book investigates the relationship between strategy optimization mechanisms and the efficiency (performance and productivity) in the digital and open economy. The aim of this question on the interactions between strategies, performance, and market forms is to understand how, at the level of value-based management, productivity determines the optimized strategies and how the optimization process is modified according to the performance of the firm. Value-Based Management in an Open Economy: Optimizing Strategy to Improve Business and Performance outlines the conditions under which this relationship is negative, neutral, or positive in the banking sector. Applying economic and managerial principles, the book demonstrates that problems related to the competitive advantage can be successfully analyzed like all other business problems, using traditional tools of economics, finance, and strategy (provided that the dynamics of industry-specific interactions are considered). The author argues that the ability of firms to improve their performance depends on the structure in which these organizations compete and their ability to optimize their value-based management. Key features: Captures the diversity and the interconnection of management control and firm performance issues Analyzes the challenges of contemporary management control in order to provide transversal and sustainable strategic solutions Promotes understanding of the prospects of optimizing mechanisms This volume is intended primarily for those who will be called upon to work as researchers or professionals in the fields of corporate governance and value-based management. The book identifies the technical practices and proposes mechanisms to encourage growth and improve performance. The book will be helpful for renewing strategic approaches and value-based mechanisms in a digital and open economy.
Download or read book Audit Firm Industry Sector Leader Geographic Location and Its Association With Audit Fees written by Matthew Reidenbach and published by . This book was released on 2019 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study tests whether an association exists between the geographic location of industry sector leaders in an auditing firm and differences in audit pricing for that same auditing firm's industry clients. Using organizational learning theory and human capital theory, we predict that the industry-specific human capital of the audit partner in charge of an industry practice serves as a silo for this knowledge and provides an opportunity to charge a fee premium to their local clients. Using a hand collected dataset of partners overseeing industry-specific audit practices on audit firm websites, we provide evidence that a positive association exists between industry sector leaders' office locations and audit fees for same-industry clients in that city. Building on prior research on the effect of individual audit partners and general human capital on audit quality, this study provides additional insight into the human capital of audit firm industry sector leaders and the dynamics of audit market competition.
