Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Using Peer Firms To Examine Whether Auditor Industry Specialization Improves Audit Quality And To Enhance Expectation Models For Analytical Audit Procedures
Download Using Peer Firms To Examine Whether Auditor Industry Specialization Improves Audit Quality And To Enhance Expectation Models For Analytical Audit Procedures full books in PDF, epub, and Kindle. Read online Using Peer Firms To Examine Whether Auditor Industry Specialization Improves Audit Quality And To Enhance Expectation Models For Analytical Audit Procedures ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Using Peer Firms to Examine Whether Auditor Industry Specialization Improves Audit Quality and to Enhance Expectation Models for Analytical Audit Procedures by : Miguel Minutti Meza
Download or read book Using Peer Firms to Examine Whether Auditor Industry Specialization Improves Audit Quality and to Enhance Expectation Models for Analytical Audit Procedures written by Miguel Minutti Meza and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Using Peer Firms to Examine Whether Auditor Industry Specialization Improves Audit Quality and to Enhance Expectation Models for Analytical Audit Procedures by : Miguel Angel Minutti Meza
Download or read book Using Peer Firms to Examine Whether Auditor Industry Specialization Improves Audit Quality and to Enhance Expectation Models for Analytical Audit Procedures written by Miguel Angel Minutti Meza and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Public accounting firms required study on the potential effects of mandatory audit firm rotation. by :
Download or read book Public accounting firms required study on the potential effects of mandatory audit firm rotation. written by and published by DIANE Publishing. This book was released on with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Does Auditor Industry Specialization Improve Audit Quality? by : Miguel Minutti-Meza
Download or read book Does Auditor Industry Specialization Improve Audit Quality? written by Miguel Minutti-Meza and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether auditor industry specialization, measured using the auditor's within-industry market share, improves audit quality and results in a fee premium. After matching clients of specialist and non-specialist auditors on a number of dimensions, as well as only on industry and size, there is no evidence of differences in commonly used audit-quality proxies between these two groups of auditors. Moreover, there is no consistent evidence of a specialist fee premium. The matched-sample results are confirmed by including client fixed effects in the main models, examining a sample of clients that switched auditors, and using an alternative proxy that aims to capture the auditor's industry knowledge. The combined evidence in this study suggests that the auditor's within-industry market share is not a reliable indicator of audit quality. Nevertheless, these findings do not imply that industry knowledge is not important for auditors, but that the methodology used in extant archival studies to examine this issue does not fully parse out the effects of auditor industry specialization from client characteristics.
Book Synopsis The Effect of Audit Firm Specialization on Earnings Management and Quality of Audit Work by : Mohamed A. Hegazy
Download or read book The Effect of Audit Firm Specialization on Earnings Management and Quality of Audit Work written by Mohamed A. Hegazy and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims at investigating the effect of industry specialization on the audit quality and earnings quality. It examines the relation between industry specialization and earnings quality, financial reporting quality, and audit quality. The research posits that industry specialization constrains earnings management. In addition, it hypothesized a positive relationship between industry specialization and financial reporting quality. An experiment was conducted in an audit firm with international affiliation in Egypt to test the research hypotheses. The results indicate that there is no significant difference between industry specialist auditors and non-specialists in constraining earnings management. In addition, findings support that financial reporting quality was significantly higher when specialists conducted the audit. The results provide empirical evidence consistent with the hypothesis that auditor with industry specialization improves audit quality. Finally, industry specialization enables auditors to realize the amendments in auditing standards better than non-specialists.
Book Synopsis Auditor Size, Partner-specialization, and Private Company Audit Adjustments by : Zachary T. Kowaleski
Download or read book Auditor Size, Partner-specialization, and Private Company Audit Adjustments written by Zachary T. Kowaleski and published by . This book was released on 2018 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether auditor size and partner-specialization predict audit adjustments when privately-owned broker-dealers (BDs) change audit firms. Private company auditors have relatively low incentives to compete on quality because managers may select the auditor without involving an audit committee, and these audits present relatively lower reputation and litigation risks compared to public companies. Though I predict that larger firms will provide higher audit quality in this environment, it is unclear whether partner-specialists' will use their BD domain-knowledge to provide higher audit quality where the market does not demand it. Analyses reveal that BDs that change to a larger (smaller) auditor are more (less) likely to record material audit adjustments. BDs that change to a specialist partner, however, are less likely to record material audit adjustments; partners from BD audit firms with no issuer clients drive this effect. Using a subsample with available fee and hour data shows that the auditor size improvements to audit quality correspond with increases to fees and hours, but also incremental to hours. Conversely, partner-specialists employ fewer audit hours than non-specialists. Collectively, these results show that smaller firms, especially the partner-specialists within those firms, are willing to tolerate a higher risk of material misstatement than larger firms will accept when the demand for audit quality is low.
Book Synopsis Auditor Industry Specialization, Chapter 15 by : Debra C. Jeter
Download or read book Auditor Industry Specialization, Chapter 15 written by Debra C. Jeter and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: As audit quality is paramount in returning the profession to the “priesthood” in the wake of accounting scandals such as Enron and bank failures, perhaps the most important question with respect to industry specialization is whether or not industry specialists provide truly superior quality audits. Research in industry specialization by auditors has focused to date primarily on addressing this question; the pricing of audits by specialists is a related issue also examined in a number of studies. Research suggests that specialists are associated with higher earnings quality for their auditees, whether due to intervention in the reporting process, or because management anticipates such intervention and constrains opportunistic earnings management. The role of industry specialization in audit pricing has been frequently addressed in the literature, and yet remains largely unresolved. Some studies present evidence of specialist premiums, while others find no premiums or premiums only for certain subsets of clients. In its 2003 report, the GAO expressed some concern that auditor choice was limited for large national and multinational companies requiring industry-specific expertise, noting that an auditor who audits a number of smaller companies within an industry may not have the necessary expertise to handle the larger clients in that industry. Most researchers, however, find little evidence of adverse impacts such as oligopolistic pricing as a result of the increased audit market concentration resulting from the audit firm mergers and demise of Arthur Andersen. Industry specialization, if pursued as a means of enhancing the knowledge and understanding necessary to conduct superior audits, should result in benefits to both client and auditor. Industry specialists may be able to provide higher levels of assurance because they are more likely to assess risks, and to detect financial reporting errors and irregularities, and are thus equipped to deliver better planned and more effective audits.
Author :United States. General Accounting Office Publisher :DIANE Publishing ISBN 13 :1428937056 Total Pages :167 pages Book Rating :4.4/5 (289 download)
Book Synopsis Mandatory audit firm rotation study study questionaires, responses, and summary of respondents' comments. by : United States. General Accounting Office
Download or read book Mandatory audit firm rotation study study questionaires, responses, and summary of respondents' comments. written by United States. General Accounting Office and published by DIANE Publishing. This book was released on 2004 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Audit Firm Industry Specialisation and Analyst Forecast Accuracy by : Yi Wu
Download or read book Audit Firm Industry Specialisation and Analyst Forecast Accuracy written by Yi Wu and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: My thesis examines whether the extent to which audit firms concentrate their business in particular industries ('audit firm industry specialisation') improves the usefulness of published financial reports for analysts' predictions of future earnings, and whether the strength of any observed association varies in a manner consistent with the existence of a causal relationship between audit quality and analyst forecast accuracy. Prior research presents diametrically opposite predictions and results regarding the directional relationship between audit firm industry specialisation and analyst forecast accuracy. My thesis shows that the conflicting results in the literature arise largely from prior studies' focus on short-horizon (end-of-year) forecast accuracy, which is subject to competing effects related to audit quality, and which in turn renders the resulting empirical models highly sensitive to model specification. I argue that analyst long-horizon (beginning-of-year) forecast accuracy is a more direct measure of the usefulness of published earnings for the prediction of future performance, and demonstrate that regressions using this metric consistently report a significant positive relation between audit firm industry specialisation and forecast accuracy. I then examine whether the observed positive association between audit firm industry specialisation and forecast accuracy varies with factors argued to reflect the relative importance of audit quality to the predictability of earnings. First, I show that the impact of audit firm industry specialisation on forecast accuracy increases with the underlying riskiness of clients' operations (proxied by cash flow volatility and innate accrual quality). I then argue that audit firm industry specialisation should have a greater impact on the forecast accuracy of lower-quality analysts (where quality is proxied by experience, employer size, 'All-Star' status and composite measures), who rely relatively heavily on published earnings when generating forecasts. To this end, I present evidence that audit firm industry specialisation has a greater impact on forecast accuracy for: (1) firm-years where the average 'quality' of analysts covering the firm is lower, and (2) for forecasts issued by individual analysts of lower quality. My results are robust to the use of controls for the endogenous selection of industry specialist auditors. In sum, my study presents evidence that greater audit quality does improve the usefulness of financial statements for the prediction of future earnings.
Book Synopsis Auditor Industry Specialization and the Earnings Response Coefficient by : Jagan Krishnan
Download or read book Auditor Industry Specialization and the Earnings Response Coefficient written by Jagan Krishnan and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study compares the earnings response coefficients of clients of industry specialist and non-specialist auditors. Prior work (e.g., DeAngelo 1981) has suggested that auditors offer different levels of audit quality, in response to client variations in the demand for different levels of audit quality (Watts and Zimmerman 1986). One component of the quality difference across auditors is industry specialization (Craswell et al. 1995). Empirical evidence on the effect of industry specialization on audit quality proxies such as audit fees, auditor litigation and compliance with accounting standards is mixed. This study examines the hypothesis that industry specialization leads to a better quality of audit by comparing the earnings response coefficients of clients audited by industry specialists with those of clients not audited by industry specialists. Teoh and Wong (1993) argue that audit quality is positively associated with the client's quality of earnings and therefore the earnings response coefficient (ERC), which is the responsiveness of the stock market to information about unexpected earnings. They present evidence that one measure of audit quality, auditors' brand-name (Big 6 or not), is positively associated with the ERC. This paper extends this argument by examining the effect of another facet of audit quality, auditor industry specialization, on the ERC. The results suggest that, after controlling for previously established correlates of the ERC, as well as industry affiliation, clients of industry specialist auditors have higher ERCs than clients of non-specialist auditors.
Book Synopsis Auditor Industry Specialization and Client Disclosure Quality by : Kimberly Dunn
Download or read book Auditor Industry Specialization and Client Disclosure Quality written by Kimberly Dunn and published by . This book was released on 2000 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relation between audit firm industry specialization and client disclosure quality. Our motivation for conducting this research arises from the claims made by each of the Big5 public accounting firms that industry specialization enables each to provide superior service and quality to clients in its target industries.We document a positive association between industry-specialized audit firms and analysts' rankings of disclosure quality in unregulated industries, but no relation in regulated industries. Alternative measures of auditor industry specialization support our conclusions. Our results suggest industry-specialized audit firms add value to clients in unregulated industries in the form of improved disclosure quality.
Book Synopsis The Effect of Client Industry Agglomerations on Auditor Industry Specialization by : Devin Williams
Download or read book The Effect of Client Industry Agglomerations on Auditor Industry Specialization written by Devin Williams and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research on auditor industry specialization documents fee premiums for local audit offices that are industry specialists. This research assumes that the effects of specialization are uniform across markets. We examine industry specialization based on the economic theory of industry agglomeration (geographic areas with high industry concentration). Agglomeration economies can facilitate access to knowledge for auditors serving a specific industry in those locations. We find that industry specialists in agglomerations earn a fee premium in excess of specialists in other markets. We find that non-specialist offices in agglomerations also earn fee premiums in that industry when compared to non-specialists in other markets even when controlling for these groups' absolute share of the national market. We also address whether or not this expertise can be shared among offices in an agglomeration specialist's firm. We find that audit offices that have easy connections to a within-firm office in an agglomerated market can earn a fee premium relative to more distant offices, suggesting a benefit from knowledge transfer. This fee premium accrues to offices that would not be considered a specialist using traditional market share measures in a given industry. These findings indicate that the benefit of industry specialization depends on more than local market share.
Book Synopsis Partner Industry Specialization and Audit Pricing in the United Kingdom by : Khairul Mohd Kharuddin
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.
Book Synopsis Do Practitioner Assessments Agree with Academic Proxies for Audit Quality? Evidence from PCAOB and Internal Inspections by : Daniel Aobdia
Download or read book Do Practitioner Assessments Agree with Academic Proxies for Audit Quality? Evidence from PCAOB and Internal Inspections written by Daniel Aobdia and published by . This book was released on 2019 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the degree of concordance between fifteen measures of audit quality used in academia and two measures of audit process quality determined either by audit firms' internal inspections or by Public Company Accounting Oversight Board inspections of individual engagements. Using two confidential datasets of these assessments of audit process quality, I find that three of the measures of audit quality used by academics have significant associations with both measures of audit process deficiencies used by auditors and regulators: (i) the propensity to restate financial statements, (ii) the propensity to meet or beat the zero earnings threshold, and (iii) audit fees. Seven academic proxies are significantly associated with only one audit process quality measure, and five have insignificant associations with both practitioner assessments. Overall, the significant associations indicate that practitioners and academics share common ground in identifying low-quality audits. These findings can provide guidance for future studies in selecting audit-quality proxies suitable for different research questions.
Book Synopsis A Hidden Risk of Auditor Industry Specialization by : Cory A. Cassell
Download or read book A Hidden Risk of Auditor Industry Specialization written by Cory A. Cassell and published by . This book was released on 2019 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a measure of office-level industry concentration/specialization (as opposed to a market-based measure), we identify situations in which auditor industry specialization could be detrimental for audit outcomes. In stable environments, industry specialist auditors should be able to apply their unique experience and knowledge in ways that yield better audit outcomes. However, during periods of heightened industry-specific risk, specialist auditors from the affected industry could struggle to secure and allocate sufficient resources to mitigate the heightened risk in the affected industry because, by construction, specialists in the affected industry have a client portfolio that is concentrated in the affected industry (i.e., there is insufficient resource slack). We test our predictions by investigating the effects of the recent financial crisis on audits of clients from the banking industry. We find that, during the period before the financial crisis, banking auditor industry specialization is associated with higher audit quality and more timely audits. However, during the financial crisis, the results indicate that banking auditor industry specialization is associated with lower audit quality and less timely audits. Collectively, our results suggest that auditor office-level industry specialization can be detrimental in certain circumstances and that audit firms and audit regulators should consider whether the audit market, audit firms, or audit offices have become too specialized to handle the resource allocation problems that crisis situations present.
Book Synopsis The Effects of Audit Firm and Partner Industry Specialisation and Corporate Governance on Audit Quality and Earnings Quality by : Khairul Mohd Kharuddin
Download or read book The Effects of Audit Firm and Partner Industry Specialisation and Corporate Governance on Audit Quality and Earnings Quality written by Khairul Mohd Kharuddin and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
