Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Managing The Auditor Client Relationship Through Partner Rotations
Download Managing The Auditor Client Relationship Through Partner Rotations full books in PDF, epub, and Kindle. Read online Managing The Auditor Client Relationship Through Partner Rotations ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Managing the Auditor-Client Relationship Through Partner Rotations by : Mary Kate Dodgson
Download or read book Managing the Auditor-Client Relationship Through Partner Rotations written by Mary Kate Dodgson and published by . This book was released on 2019 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: While current audit standards explicitly state engagement partner tenure requirements, firms have flexibility in managing the rotation process. We conduct semi-structured interviews with 20 U.S. audit firm partners who share their experiences on topics including how they identify appropriate candidate partners and what efforts they undertake to manage relationships with clients post-rotation. We investigate firms' motivation to manage the auditor-client relationship through the lens of Social Exchange Theory (SET), and we consider how likely outcomes of this rotation process map onto regulators' intent that a newly rotated partner provides a fresh perspective to the audit. Our study informs regulators and investors about the process by which engagement partners are selected for rotation, documenting that partner assignment is typically not random. Further, our finding that partner rotation is an extended process (rather than a single discrete event) has implications for audit researchers investigating the effects of partner rotation.
Book Synopsis Navigating the Auditor-client Relationship During Sensitive Events by : Mary Dodgson
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.
Book Synopsis Understanding Auditor-client Relationships by : Gary Kleinman
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.
Book Synopsis The Auditor-Client Management Relationship in Financial Reporting Negotiation by : Michael Gibbins
Download or read book The Auditor-Client Management Relationship in Financial Reporting Negotiation written by Michael Gibbins and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper contributes to the growing literature on the auditor-client management negotiation process by focusing on the dyadic relationship. Our audit partner-CFO dyads describe the process of resolving issues related to financial reporting using a combination of open ended and semi-structured questions. Our qualitative and quantitative analysis of the interviews suggests that relationships can be characterized as either proactive or reactive and nested within these relationships some are described as good and some as poor. From our analysis, it appears that the CFO determines implicitly, and sometimes explicitly, the type of relationship they want with their auditor (i.e. proactive or reactive). However, it also appears that the audit partner is responsible for relationship quality (i.e. good or poor). But if the relationship is not in a good state or there is a mismatch between the CFO and audit partner personalities, the audit partner will most likely be switched either by the audit firm or the CFO. Further, our informants described a negotiation process that is not linear, but rather one that can iterate backwards, skip forward and return to redefine the basic issue. We label this aspect of negotiation as fluidity. Finally, two major types of issues were discussed (i.e. regulatory type issues or transaction-based issues) with the type of issue influencing many aspects of the resolution process. Overall, this qualitative research substantially increases our understanding of the nature of the CFO-audit partner dyadic relationship and improves our understanding of the components of prior models of auditor-client management negotiation.
Book Synopsis Called to Account by : Paul M. Clikeman
Download or read book Called to Account written by Paul M. Clikeman and published by Routledge. This book was released on 2013-07-24 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: Selected as an Outstanding Academic Title by Choice Magazine in 2014! Called to Account takes a broad perspective on how financial frauds have shaped the public accounting profession by focusing on cases of fraud around the globe. Ever entertaining and educational, the book traces the development of the accounting standards and legislation put in place as a direct consequence of these epic scandals. The new edition offers updated chapters on ZZZZ Best and Arthur Andersen, plus new chapters devoted to Parmalat, Satyam, and The Great Recession. Through stories like Barry Minkow’s staged constructions sites and MiniScribe’s fake inventory number generating computer program, "Cook Book", students will learn that fraud is nothing new, and that financial reform is heavily influenced by politics. With discussion questions and a useful chart showing instructors and students how each chapter illustrates the topics covered in other textbooks, Called to Account is the ideal companion for any class in auditing, advanced accounting or forensic accounting.
Book Synopsis Auditor Client Relationship and Audit Quality by : Suhaib Aamir
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.
Book Synopsis The Routledge Companion to Auditing by : David Hay
Download or read book The Routledge Companion to Auditing written by David Hay and published by Routledge. This book was released on 2014-09-15 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditing has been a subject of some controversy, and there have been repeated attempts at reforming its practice globally. This comprehensive companion surveys the state of the discipline, including emerging and cutting-edge trends. It covers the most important and controversial issues, including auditing ethics, auditor independence, social and environmental accounting as well as the future of the field. This handbook is vital reading for legislators, regulators, professionals, commentators, students and researchers involved with auditing and accounting. The collection will also prove an ideal starting place for researchers from other fields looking to break into this vital subject.
Book Synopsis The Auditor-client Contractual Relationship by : Linda DeAngelo
Download or read book The Auditor-client Contractual Relationship written by Linda DeAngelo and published by . This book was released on 1981 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Research in Accounting Regulation by : Gary Previts
Download or read book Research in Accounting Regulation written by Gary Previts and published by Elsevier. This book was released on 2002-01-23 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research in Accounting Regulation
Book Synopsis Sustaining Mutual and Market Interests in the Auditor and Corporate Client Relationship by : Khalid Rasheed Al-Adeem
Download or read book Sustaining Mutual and Market Interests in the Auditor and Corporate Client Relationship written by Khalid Rasheed Al-Adeem and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the accounting literature on the audit function, the auditor-client manager relationship, and the possible influence of these relationships on auditor independence. The negotiation interactions between client managers and auditors and the distribution of power reveal the superior position of client management. The interactions also reveal that auditors participate in potential joint ventures. Auditor independence may be subject to compromise to sustain effective relationships with corporate client management even with the presence of a monitoring mechanism such as a board of directors. To ensure favorable opinions from their current auditors, managers may utilize any available possible means. A thorough audit that displeases client management comes at a cost for auditors who can be viewed as economic agents serving their own interests. To sustain confidence in attesting and assurance services, auditors must appear independent to external parties to provide assurance that auditors provide valuable services that support a 'functional' market. Trust placed in auditors and, thus, the capital market is possible as long as auditors appear independent.
Book Synopsis The Role of the Audit Partner in the Auditor-client Economic Bond, Auditor Rotation and Auditor Workload by : Kwadwo Bonsu Boateng
Download or read book The Role of the Audit Partner in the Auditor-client Economic Bond, Auditor Rotation and Auditor Workload written by Kwadwo Bonsu Boateng and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Audit Regulations, Audit Market Structure, and Financial Reporting Quality by : Christopher Bleibtreu
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.
Book Synopsis Advances in Accounting Behavioral Research by : Khondkar E. Karim
Download or read book Advances in Accounting Behavioral Research written by Khondkar E. Karim and published by Emerald Group Publishing. This book was released on 2023-03-13 with total page 409 pages. Available in PDF, EPUB and Kindle. Book excerpt: Volume 26 of Advances in Accounting Behavioral Research compiles innovative and new explorations into the behavioral aspects of accounting and auditing including the effects of organizational commitment, the impact of stressors on performance, the effects of auditor familiarity and the examination of personality traits.
Book Synopsis Mandatory Partner Rotation and Audit Quality by : Brant Christensen
Download or read book Mandatory Partner Rotation and Audit Quality written by Brant Christensen and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Although mandatory partner rotation has existed in the U.S. in some form since the 1970s, insufficient U.S. partner-specific data has limited researchers' ability to examine the costs and benefits of mandatory U.S. partner rotation in the current audit environment. Using proprietary data from a large international audit firm, I investigate the effect of mandatory lead partner rotation in the U.S. on three proxies for audit quality: audit fees, identifying and reporting a material control weakness, and providing a modified audit opinion. Controlling for client- and audit-specific characteristics, I provide evidence that mandatory rotation of the lead engagement partner increases audit quality in the year of rotation among larger audit offices only; audit quality is lower in the year of mandatory lead partner rotation in smaller offices. Further, rotation increases audit quality when the incoming lead engagement partner has the requisite industry expertise, but decreases audit quality when the lead partner lacks such expertise. Additional analyses show that mandatory concurring partner rotation has a similar, albeit weaker effect on audit quality. My results are robust to various proxies for audit quality, time periods, and model specifications. These findings provide evidence on the costs and benefits of partner rotation and informs practitioners, academics, and regulators as to the consequences of mandatory partner rotation in the U.S. The electronic version of this dissertation is accessible from http://hdl.handle.net/1969.1/155494
Book Synopsis Audit Partner Rotation, Earnings Quality and Earnings Conservatism by : Jane Hamilton
Download or read book Audit Partner Rotation, Earnings Quality and Earnings Conservatism written by Jane Hamilton and published by . This book was released on 2005 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provide evidence of an association between audit partner rotation and the quality of earnings. It is a requirement for Australian firms that the engagement partner be identified by name in the annual report. Using a sample of 3,621 firm-years between 1998 and 2003, we show that audit partner changes most likely reflecting partner rotation (i.e., they are not due to a switch of audit firm) are associated with lower signed unexpected accruals, and that for Big 5 clients this relation is driven by smaller positive unexpected accruals following partner changes. This result is consistent with more conservative reporting following a rotation of audit partner, and this interpretation is further supported by evidence suggesting a significant increase in the asymmetrically timely recognition of economic losses when firms have a change of audit partner. Our tests also show that these effects occur predominantly among clients of Big 5 audit firms, and that any effect is concentrated in the latter part of our sample period, when partner rotation was a professional requirement. We therefore conclude that audit partner rotation is associated with incrementally greater conservatism in financial reporting, but only in circumstances where the ability of client firms to resist partner rotation is reduced by mandatory partner rotation requirements.
Book Synopsis On the Economics of Audit Partner Tenure and Rotation by : Brandon Gipper
Download or read book On the Economics of Audit Partner Tenure and Rotation written by Brandon Gipper and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides the first partner tenure and rotation analysis for a large cross-section of U.S. publicly listed firms over an extended period. We analyze the effects on audit quality as well as economic tradeoffs related to partner tenure and rotation with respect to audit hours and fees. On average, we find no evidence for audit quality declines over the tenure cycle and little support for fresh-look benefits after rotations. Nevertheless, partner rotations have significant economic consequences. We find increases in audit fees and decreases in audit hours over the tenure cycle, which differ by partner experience, client size, and competitiveness of the local audit market. More generally, our findings are consistent with efforts by the audit firms to minimize disruptions and audit failures around mandatory rotations. We also analyze special circumstances, such as audit firm switches and early partner rotations, and show that they are more disruptive than mandatory rotations, and also more likely to exhibit audit quality effects.
Book Synopsis Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals by : Chih-Ying Chen
Download or read book Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals written by Chih-Ying Chen and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mandatory audit partner rotation has been adopted in certain countries while audit firm rotation is still being debated in many places. Most of the extant research on the relation between auditor tenure and earnings quality provides evidence at the audit firm level. However, since audit firm tenure is correlated with partner tenure and audit firm rotation is more costly than partner rotation, it is important to know whether earnings quality is related to audit firm tenure, partner tenure, or both. We investigate this issue using a sample of Taiwanese companies for which the audit report must be signed by two partners with their names disclosed in the report. Using performance adjusted discretionary accruals as a proxy for earnings quality, we find that the absolute and positive values of discretionary accruals decrease significantly with partner tenure. After controlling for partner tenure, we find that absolute discretionary accruals decrease significantly with audit firm tenure. Our findings are not consistent with the arguments that earnings quality decreases with extended audit partner tenure and that audit firm rotation in addition to partner rotation would improve earnings quality. Our results are robust to alternative ways of measuring partner tenure under the dual signature system. However, since the audit reports do not disclose which partner is responsible for maintaining the auditor-client relationship, measurement errors in partner tenure remain an issue that cannot be fully addressed in the context of our study.
