services auditor independence and audit quality

... ••–•• (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

... DeAngelo, L E (1981a) Auditor independence, ‘‘low-balling’’ and disclosure regulation Journal of Accounting and Economic, 3, 113–127 DeAngelo, L E (1981b) Auditor size and audit quality Journal of ... recommends that audit committees consider rotation of auditors as a means of enhancing auditor independence and building investor confidence The Commission believes that the cost of auditor rotation ... (2005) Auditor tenure and perceptions of audit quality Accounting Review, 80(2), 585–612 Hill, C., & Booker, Q (2007) State accountancy regulators’ perceptions of independence of external auditors...

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

... 2012 Shareholder Voting on Auditor Selection, Audit Fees, and Audit Quality 171 Mayhew, B W., and J E Pike 2004 Does investor selection of auditors enhance auditor independence? The Accounting ... strengthen auditor independence and lead to both higher audit quality and higher audit fees We examine if firms that have shareholder voting on auditor ratification pay lower (or higher) audit fees ... 2012 Shareholder Voting on Auditor Selection, Audit Fees, and Audit Quality 153 minimize costs and prices and to increase quality. ’’ Thus, the legislative, judicial, and executive views appear...

Ngày tải lên: 06/01/2015, 19:42

... costs, and auditing standards Regardless of whether or not auditors’ levels of skill are observable, the AUDITOR S SKILL, AUDITING STANDARDS, LITIGATION AND AUDIT QUALITY 153 quality of audit ... exist n1 and n2 , with n1

Ngày tải lên: 06/01/2015, 19:42

... incentives for auditors to lose independence and compromise audit quality If auditors are to maintain independence and preserve audit quality even when they provide non -audit services, concerns ... provision of non -audit services and auditor quality Empirical measures for our theoretical constructs audit quality, nonaudit fees, and auditor specialization—can be noisy, and there is little ... NON -AUDIT SERVICE FEES AND AUDIT QUALITY 201 Prior research indicates that the provision of non -audit services creates economic bonds that weaken an auditor s independence, and therefore, audit quality...

Ngày tải lên: 06/01/2015, 19:43

... A., and K Raghunandan 2002 Auditor tenure and audit reporting failures Auditing: A Journal of Practice and Theory 21 (1): 67–78 CAR Vol 27 No (Fall 2010) Does Auditor Tenure Improve Audit Quality? ... between auditor tenure and fee dependence and how their effect on audit quality is contingent on the auditor s industry specialization In terms of the relation between auditor tenure and fee ... between auditor tenure and audit quality Existing studies examine a main effect of auditor tenure and ⁄ or the separate moderating effect of either auditor specialization or fee dependence, and findings...

Ngày tải lên: 06/01/2015, 19:43

... between NAS and audit quality Conclusions and implications The issue of whether providing audit clients with NAS affects auditor independence and audit quality has been extensively debated and researched ... R., Jr and Francis, J R (2004) Professional services fee and auditor objectivity, Auditing: A Journal of Practice & Theory, 23(1), pp 29–52 Robinson, D (2008) Auditor independence and auditor- provided ... Accounting and Economics, 49(3), pp 186–205 Lee, H.-Y., Mande, V and Son, M (2009) Do lengthy auditor tenure and the provision of non -audit services by the external auditor reduce the audit report...

Ngày tải lên: 06/01/2015, 19:44

... an auditor s report) Formation and training of quality assurance team and starting that process Certification of auditors (minimum requirement on audit manager and head of department level) We ... templates and auditing software • Quality Control in the Audit Process – Integrity, due care, professional behaviour – Clear responsibilities (who will the work and who will review) – Review and consultation ... Post Audit Quality Assurance – QA team makes an annual review This is trial version www.adultpdf.com How we ensure quality in audit process • • • • • We standardise as much as possible (and reasonable)...

Ngày tải lên: 18/06/2014, 20:20

... prohibits auditors from providing most types of NAS to their audit clients While it is likely that the economic relationship between clients and auditors can threaten auditor independence and the quality ... component on audit quality separately They find a positive association between tax services and audit quality, and a negative association between unspecified NAS and audit quality Paterson and Valencia ... evidence on audit report lag Auditing: A Journal of Practice and Theory 20 (1): 137-146 Knechel, W.R and D Sharma 2012 Auditor- provided non -audit services and audit effectiveness and efficiency:...

Ngày tải lên: 06/01/2015, 19:41

... non -audit services by audit firms will impair auditor independence and therefore its quality of services. ” The results show that the majority agreed that auditors offering non -audit along with audit ... an impact on auditor independence and audit quality Such services tend to be regarded by regulators in the UK, the US, Australia, and various other countries as a threat to auditor independence ... Krawczyk (2002), Lowe and Pany (1995, 1996), Raghunandan (2003), and Wines (1994) argue that performing non -audit and audit services will pressurize auditors not to conduct the audit function objectively,...

Ngày tải lên: 06/01/2015, 19:41

Ngày tải lên: 06/01/2015, 19:41

... governance and enhance auditor independence by mandating federal government oversight of auditors, enhancing audit committee auditor oversight, and limiting the opportunity for auditors to sell nonaudit ... abnormal audit and/ or engagement fees and audit quality (i.e., the curve relating audit quality to abnormal audit fees exhibits the same slope for both positive and negative abnormal audit fees).2 ... power should influence audit quality for the following reason Audited financial statements, and hence audit quality, are the joint effort of the auditor and the client (Antle and Nalebuff 1991) that...

Ngày tải lên: 06/01/2015, 19:41