quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published...quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published by the government to the public.Examinations carried out by internal inspectorate auditors include reviewing accounting,finance,operations,and others to protect against misstatements which could affect the quality of information displayed by the government through financial reports,performance,and compliance with laws and regulations to the public as transparency efforts to the public.This research aims to empirically test and analyze the influence of auditors’work experience and professionalism on audit quality partially and simultaneously at the Bandung Regency Regional Inspectorate.The population in this study were all auditors who worked at the Bandung Regency Regional Inspectorate with a sample of 35 auditors.The sampling technique used in this research was purposive sampling.A questionnaire was used for the data.This research uses multiple regression analysis,where the results of this research show that partially and simultaneously the variables of work experience and auditor professionalism have a positive and significant effect on audit quality.The implications of the results of this research state that work experience and professionalism are needed to improve audit quality because the results of this research show that work experience and auditor professionalism have a positive and significant effect on audit quality.展开更多
The efforts by the Financial Reporting Council （FRC） in the United Kingdom （UK） to stimulate audit firms to improve audit quality manifest in its Discussion Paper： Promoting Audit Quality warrant further analysis...The efforts by the Financial Reporting Council （FRC） in the United Kingdom （UK） to stimulate audit firms to improve audit quality manifest in its Discussion Paper： Promoting Audit Quality warrant further analysis. The discussion paper identified factors such as audit firm culture, the quality of people, the effectiveness of audit process, and outside factors such as management and audit committee （AC） which can affect level of audit quality in practice. Reporting upon the analysis of responses to the discussion paper, the objective of this study is to analyze views from the respondents about various issues related to audit quality. This study composes of how subject of audit quality is seen in practice, which contributes to our understanding of conditions, events, or processes that can affect audit quality in practice.展开更多
This paper investigates the determinants of audit quality of three countries especially the United States, France and Germany belonging to three different legal systems. These determinants concern the legal system of ...This paper investigates the determinants of audit quality of three countries especially the United States, France and Germany belonging to three different legal systems. These determinants concern the legal system of country, investment opportunity set and ownership structure which have influence of audit quality.Empirical results show, initially, that specificities of legal system are positively associated with audit quality appreciated by size of audit firm. Then, the results reveal that investment opportunity set influences partially size of audit firm. Finally, ownership structure influences negatively the search for a high audit quality展开更多
Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we di...Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we directly examine the effect of external audit quality on earnings management by using discretionary accruals. We find that the discretionary accruals of non-dual audit companies are significantly greater than those of dual audit companies. We also find that clients of non-First Ten auditors intend to report greater discretionary accruals than those of First Ten auditors.展开更多
This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an ana...This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an analysis of the current audit market for public companies are offered. This paper also sheds light upon the potential independence problems resulting in low audit quality and current barriers to audit researches in Kazakhstan. Consistent with the findings of extant researches on audit quality and the general perceptions of investors, two hypotheses were developed, i.e., the audits performed by Big 4 audit firms in Kazakhstan also have higher quality than non-Big 4 audit firms in terms of audit tenure and the frequency of issuing modified opinions. The result confirms the hypothesis that Big 4 audit firms provide higher audit quality than smaller local firms in association with audit tenure instead of in relation to the frequency of issuing modified opinions. The result indicates that Big 4 audit firms may not be as independent as they will be in a highly litigious market. Therefore, an independent inspection should be regularly implemented according to the audit law, and the inspection report should be publicized by Chamber of Auditors （COA）1. If this is not practical due to the lack of qualified inspectors, a peer review may be an altemative to implement the quality control policy immediately. To the author＇s best knowledge, this is the first audit quality research in countries of the Commonwealth of Independence States （CIS）.展开更多
The purpose of this paper is to examine the effect of the board of directors,namely board size,board independence,and CEO duality,as well as audit quality on the disclosure of internal control information.The sample c...The purpose of this paper is to examine the effect of the board of directors,namely board size,board independence,and CEO duality,as well as audit quality on the disclosure of internal control information.The sample consists of 164 European companies listed in the STOXX Europe 600.Based on positive agency theory,the authors posit that board of directors and audit quality influence corporate internal control disclosure practice.The content analysis and the design of the evaluation criterion were used to calculate the disclosure index of internal control.Thus,multiple regression analysis is utilized to analyze the results of this paper.The average internal control information disclosure index was 0.285,indicating that most of the companies in our sample do not disclose enough information about the internal control.This low level of forward-looking information disclosure makes it very difficult for corporate stakeholders to determine the future performance of the company.Multivariate results indicate that internal control disclosure is positively and significantly associated with board independence,CEO duality,and audit quality.This study contributes to the literature on the various governance characteristics and disclosure by showing that the disclosure of internal control information in European countries is positively and significantly associated with board independence,separation of duties,and audit quality.Our study was based on a sample of European companies including countries regulating IC disclosure as well as unregulated settings.As noted by Bedard and Graham(2014),regulatory differences in countries can contribute insights on the costs and benefits of disclosure.Findings also have policy implications for investors,managers,and regulators.展开更多
The 1997 economic crisis faced by many East Asian economies has generated a substantial amount of debate largely focused on issues such as the roles and functions of good corporate governance （CG）. Lack of transpare...The 1997 economic crisis faced by many East Asian economies has generated a substantial amount of debate largely focused on issues such as the roles and functions of good corporate governance （CG）. Lack of transparency has been singled out as the major culprit of the crisis and it has been alleged to cause management to indulge themselves in unhealthy activities such as income smoothing （IS） act. The paper extends Nasuhiyah, Hian, Sob and WEI （1994） by incorporating contextual variables that proxy for CG, ownership structure and audit quality. The empirical analysis is conducted on a sample of Bursa Malaysia listed companies for a period between 1991 and 2000. The main intention of taking this time span is to observe to what extend has previous business operations inculcated the feature of CG in the running of their companies＇ activities despite not being obligatory for them to uphold. The results showed that the existence of non-executive directors and the presence of brand name auditors to be significant in hindering the management from indulging in IS. The study opens the way for a richer understanding of the links among CG, ownership structure, audit quality and IS in Malaysia.展开更多
Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit...Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit fees, going concern reports, and non-audit services. This study investigates audit quality differentiation between the Big 4 and non-Big 4 audit firms hypothesis from an audit objective point of view. One of the material objectives of Japanese internal control audit institutions is to facilitate assessment and improvement of internal controls by corporations themselves. The findings of this study indicate that the Big 4 audit firms accomplish this objective better than non-Big 4 audit firms. Consequently, most Big 4 clients do not disclose significant deficiencies （SDs）, implying that they improve the quality of internal controls through internal controls auditing. This paper concludes that Big 4 firms produce a higher audit quality level than non-Big 4 firms, and this quality difference iS related to how an audit objective is interpreted and implemented.展开更多
Using China A-shares capital market data of 2002-2005, this paper supports the conclusion that client importance is negatively associated with audit quality. Further, we partition the sample into Big 4 and Non-Big 4. ...Using China A-shares capital market data of 2002-2005, this paper supports the conclusion that client importance is negatively associated with audit quality. Further, we partition the sample into Big 4 and Non-Big 4. In subgroup of Non-Big 4, client importance is negatively associated with audit quality statistically. However, this association isn＇t statistically significant in Big 4 subgroup. The conclusion is significant for the development of CPA finns.展开更多
The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit q...The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit quality in the audit is one of the most concerned by the public. Any product quality and price are equivalent, the higher the cost of investment, the better the quality, the higher the price. The audit process is also the case. This paper is mainly based on the relevant audit fees and audit quality is the summary of the existing research results on the relationship between the two for further exploration, consider the audit pricing regulation and audit industry brand and scale effect, and put forward to improve the audit fees and audit quality relationship advice.展开更多
＂Independent Audit basic norms＂ pointed out independent audit is the CPA entrusted by law, to be conduct an independent review of the accounting statements and related information and issue the audit opinion.＂ In t...＂Independent Audit basic norms＂ pointed out independent audit is the CPA entrusted by law, to be conduct an independent review of the accounting statements and related information and issue the audit opinion.＂ In the stock market, an independent audit is an important means to achieve fair presentation of financial statements by SFC-authorized accounting firm to conduct an independent audit of listed companies. In the open accounting services market, the independent audit is the most occupied audit resources, the most important business, and therefore the business is also subject to severe supervision of the SFC. Its value lies in perform forensic of the financial statements information of listed companies, and the higher the quality, the more it can reduce the risk of material misstatement of the financial statements, which is the need to strengthen and improve audit quality. Our independent audit market originated in the 1980s, along with the reform and opening up, China＇s economy is experiencing rapid growth, the demand for high quality audit increasingly enhanced. Audit activities have the nature of external and information asymmetry. External audit refers to it have an impact to investors, government departments and the other public stakeholders. Information asymmetry refers to the information asymmetry between the auditor and the audited entity, but due to the presence of asymmetric information and other reasons, the interests of stakeholders will be hurt by false information Government regulation as a model audit industry control, either in foreign or domestic, have played an irreplaceable role, especially in the socialism of China, plays a leading role. For example, when Enron bankruptcy United States speedly issue SOX in 2002 to strengthen the role of government regulation, effectively preventing the conspiracy of the CPA and the audited entity and improve audit quality. Visiblely, the role of government regulation in the audit market is very important.展开更多
This study investigates the impact of an accounting firm's providing both an annual report audit and environmental,social and govemance(ESG)report assurance on its audit quality.We find that when the same accounti...This study investigates the impact of an accounting firm's providing both an annual report audit and environmental,social and govemance(ESG)report assurance on its audit quality.We find that when the same accounting firm is responsible for both the annual report audit and ESG report assurance,this does not compromise the accounting firm's independence.On the contrary,it enhances audit quality through knowledge spillover effects and increased investment in reputational capital.Additional evidence suggests that providing ESG report assurance also prompts the accounting firm to allocate more audit resources,thereby influencing audit quality.In cross-sectional results,consistent with expectations,we find that the knowledge spillover and reputational effects of ESGreport assurance are more pronounced for companies with weaker intemal controls,non-A+H share companies and companies receiving lower levels of analyst attention.Finally,we document that having the same accounting firm responsible for ESG report assurance and annual report audit increases audit fees and also contributes to enhanced firm value.This study comprehensively highlights the influence of ESG report assurance on audit quality,and its findings offer valuable insights into the economic consequences of ESG report assurance practices.展开更多
Corporate online sales data are embedded with high informational value.Focusing on auditors who are concerned about information quality,this paper systematically tests the governance effect of releasing third-party on...Corporate online sales data are embedded with high informational value.Focusing on auditors who are concerned about information quality,this paper systematically tests the governance effect of releasing third-party online sales data on audit quality.Using the first aggregate release of online sales data in 2018 as an exogenous shock,we use the difference-in-differences model and empirically demonstrate that the audit quality of firms with released online sales data improves significantly after 2018.Subsequent analyses demonstrate that releasing online sales data has a governance effect by improving internal control quality,audit efficiency and audit prudence.The findings demonstrate that the aggregate release of third-party online sales data could have positive economic consequences.展开更多
With the deep integration of digital technology and the real economy,AI auditing has emerged as a core paradigm that breaks through the pain points of traditional auditing,such as“sampling limitations,post-event lag,...With the deep integration of digital technology and the real economy,AI auditing has emerged as a core paradigm that breaks through the pain points of traditional auditing,such as“sampling limitations,post-event lag,and reliance on manual labor”.This paper systematically reviews the theoretical connotations of AI auditing,reveals its current practical status,deeply analyzes four core challenges:data quality,ethical compliance,talent adaptation,and institutional synergy,and proposes feasible development paths from four dimensions:technological optimization,institutional construction,talent cultivation,and industry synergy.The research indicates that AI auditing needs to be“based on data elements,driven by technological innovation,with institutional guarantees as the bottom line,and talent adaptation as the core”,and achieve an upgrade from“tool assistance”to“governance synergy”under the promotion of new productive forces.展开更多
With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009...With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009 to 2013.The results show that(1) there is generally no pervasive deterioration in audit quality resulting from auditors' work stress;(2) there is a significant negative association between work stress and audit quality in the initial audits of new clients;and(3) the perception of work stress depends on auditors' individual characteristics.Auditors from international audit firms and those in the role of partner respond more strongly to work stress than industry experts.Auditors tend to react more intensively when dealing with state-owned companies.We suggest that audit firms attach more importance to auditors' work stress and rationalize their allocation of audit resources to ensure high audit quality.展开更多
We investigate the impact of industry information disclosure(IID)on audit quality in Chinese listed companies from 2010 to 2021,by constructing a staggered difference-in-differences model based on the implementation o...We investigate the impact of industry information disclosure(IID)on audit quality in Chinese listed companies from 2010 to 2021,by constructing a staggered difference-in-differences model based on the implementation of the IID guidelines in the Shanghai and Shenzhen stock exchanges in 2013 as an exogenous shock.Audit quality is significantly improved after the implementation of the IID guidelines.We also use a parallel trend test,different measurements of key variables,propensity score matching,a placebo test and different samples,to ensure the validity of our findings.IID enhances audit quality by improving auditor independence,professionalism and audit engagement,particularly in firms with high-quality and numerous IIDs,high auditor rankings,strong auditor industry expertise,IIDs with a negative tone and low R&D investment.We demonstrate the effectiveness of the IID guidelines from the perspective of auditing.展开更多
We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securi...We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securities Qualifications as an exogenous shock.This policy requires audit firms to raise the sum of the cumulative compensation limit of their PII and PRF from 6 million to 80million yuan.It is found,first,that the capital market regards this policy revision as a signal to strengthen investor protection and responds positively;client firms with high audit risks have a stronger response.Second,auditors’governance of financial information has strengthened,resulting in the significant improvement of their clients’financial reporting quality,with a stronger effect on firms with higher earnings management risk.There is no evidence that audit firms pass the costs on to their clients.Finally,the mismatch between auditors and new client firms is alleviated.We show that in an emerging market with weak investor protection,establishing a sound risk-preparedness mechanism for audit firms and strengthening the capacity for civil compensation ex post greatly improve the adaptive degree between international auditing standards and the legal environment of China,thereby enhancing the overall service quality of the audit market.展开更多
The objectives of this study are： （1） to explore current audit appointment practices by audit firms in Bahrain; （2） to look into the opinions of audit firms in Bahrain on potential effects provided by implementin...The objectives of this study are： （1） to explore current audit appointment practices by audit firms in Bahrain; （2） to look into the opinions of audit firms in Bahrain on potential effects provided by implementing mandatory audit firm rotation （audit quality）; and （3） to investigate audit firms＇ views in implementing mandatory audit firm rotation in Bahrain. To achieve these objectives, a questionnaire was developed and distributed to respondents that consist of all auditors working in audit firms in Bahrain. The findings indicated that there is a significant relationship between mandatory audit firm rotation and quality of audit. The study also indicated that longer partner tenure makes the auditor＇s performance lack the quality in the auditing process. The average mean for all questions of the hypothesis together is 2.73 with average standard deviation of 0.94 which is less than half of the mean. This means that there is no dispersion among respondents about the questions of the hypothesis. Also, the analysis shows that the t-value is 29.922, which is greater than the table critical value of t （1.66）, and the p-value obtained is 0.000 which is less than the value of significance at p 〈 0.05. These results confirm statistically that there is a significant relationship, so the null hypothesis is rejected and the alternative hypothesis is accepted.展开更多
The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an aud...The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an auditor certificate.Questionnaire method was used in the research.In the evaluation of the data,frequency,mean,and standard deviation were used as descriptive statistical methods.In addition,t-test and one-way ANOVA test were used to compare the data between independent groups.Research results show no significant difference between the opinions of the independent auditors according to various variables.展开更多
文摘quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published by the government to the public.Examinations carried out by internal inspectorate auditors include reviewing accounting,finance,operations,and others to protect against misstatements which could affect the quality of information displayed by the government through financial reports,performance,and compliance with laws and regulations to the public as transparency efforts to the public.This research aims to empirically test and analyze the influence of auditors’work experience and professionalism on audit quality partially and simultaneously at the Bandung Regency Regional Inspectorate.The population in this study were all auditors who worked at the Bandung Regency Regional Inspectorate with a sample of 35 auditors.The sampling technique used in this research was purposive sampling.A questionnaire was used for the data.This research uses multiple regression analysis,where the results of this research show that partially and simultaneously the variables of work experience and auditor professionalism have a positive and significant effect on audit quality.The implications of the results of this research state that work experience and professionalism are needed to improve audit quality because the results of this research show that work experience and auditor professionalism have a positive and significant effect on audit quality.
文摘The efforts by the Financial Reporting Council （FRC） in the United Kingdom （UK） to stimulate audit firms to improve audit quality manifest in its Discussion Paper： Promoting Audit Quality warrant further analysis. The discussion paper identified factors such as audit firm culture, the quality of people, the effectiveness of audit process, and outside factors such as management and audit committee （AC） which can affect level of audit quality in practice. Reporting upon the analysis of responses to the discussion paper, the objective of this study is to analyze views from the respondents about various issues related to audit quality. This study composes of how subject of audit quality is seen in practice, which contributes to our understanding of conditions, events, or processes that can affect audit quality in practice.
文摘This paper investigates the determinants of audit quality of three countries especially the United States, France and Germany belonging to three different legal systems. These determinants concern the legal system of country, investment opportunity set and ownership structure which have influence of audit quality.Empirical results show, initially, that specificities of legal system are positively associated with audit quality appreciated by size of audit firm. Then, the results reveal that investment opportunity set influences partially size of audit firm. Finally, ownership structure influences negatively the search for a high audit quality
文摘Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we directly examine the effect of external audit quality on earnings management by using discretionary accruals. We find that the discretionary accruals of non-dual audit companies are significantly greater than those of dual audit companies. We also find that clients of non-First Ten auditors intend to report greater discretionary accruals than those of First Ten auditors.
文摘This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an analysis of the current audit market for public companies are offered. This paper also sheds light upon the potential independence problems resulting in low audit quality and current barriers to audit researches in Kazakhstan. Consistent with the findings of extant researches on audit quality and the general perceptions of investors, two hypotheses were developed, i.e., the audits performed by Big 4 audit firms in Kazakhstan also have higher quality than non-Big 4 audit firms in terms of audit tenure and the frequency of issuing modified opinions. The result confirms the hypothesis that Big 4 audit firms provide higher audit quality than smaller local firms in association with audit tenure instead of in relation to the frequency of issuing modified opinions. The result indicates that Big 4 audit firms may not be as independent as they will be in a highly litigious market. Therefore, an independent inspection should be regularly implemented according to the audit law, and the inspection report should be publicized by Chamber of Auditors （COA）1. If this is not practical due to the lack of qualified inspectors, a peer review may be an altemative to implement the quality control policy immediately. To the author＇s best knowledge, this is the first audit quality research in countries of the Commonwealth of Independence States （CIS）.
文摘The purpose of this paper is to examine the effect of the board of directors,namely board size,board independence,and CEO duality,as well as audit quality on the disclosure of internal control information.The sample consists of 164 European companies listed in the STOXX Europe 600.Based on positive agency theory,the authors posit that board of directors and audit quality influence corporate internal control disclosure practice.The content analysis and the design of the evaluation criterion were used to calculate the disclosure index of internal control.Thus,multiple regression analysis is utilized to analyze the results of this paper.The average internal control information disclosure index was 0.285,indicating that most of the companies in our sample do not disclose enough information about the internal control.This low level of forward-looking information disclosure makes it very difficult for corporate stakeholders to determine the future performance of the company.Multivariate results indicate that internal control disclosure is positively and significantly associated with board independence,CEO duality,and audit quality.This study contributes to the literature on the various governance characteristics and disclosure by showing that the disclosure of internal control information in European countries is positively and significantly associated with board independence,separation of duties,and audit quality.Our study was based on a sample of European companies including countries regulating IC disclosure as well as unregulated settings.As noted by Bedard and Graham(2014),regulatory differences in countries can contribute insights on the costs and benefits of disclosure.Findings also have policy implications for investors,managers,and regulators.
文摘The 1997 economic crisis faced by many East Asian economies has generated a substantial amount of debate largely focused on issues such as the roles and functions of good corporate governance （CG）. Lack of transparency has been singled out as the major culprit of the crisis and it has been alleged to cause management to indulge themselves in unhealthy activities such as income smoothing （IS） act. The paper extends Nasuhiyah, Hian, Sob and WEI （1994） by incorporating contextual variables that proxy for CG, ownership structure and audit quality. The empirical analysis is conducted on a sample of Bursa Malaysia listed companies for a period between 1991 and 2000. The main intention of taking this time span is to observe to what extend has previous business operations inculcated the feature of CG in the running of their companies＇ activities despite not being obligatory for them to uphold. The results showed that the existence of non-executive directors and the presence of brand name auditors to be significant in hindering the management from indulging in IS. The study opens the way for a richer understanding of the links among CG, ownership structure, audit quality and IS in Malaysia.
文摘Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit fees, going concern reports, and non-audit services. This study investigates audit quality differentiation between the Big 4 and non-Big 4 audit firms hypothesis from an audit objective point of view. One of the material objectives of Japanese internal control audit institutions is to facilitate assessment and improvement of internal controls by corporations themselves. The findings of this study indicate that the Big 4 audit firms accomplish this objective better than non-Big 4 audit firms. Consequently, most Big 4 clients do not disclose significant deficiencies （SDs）, implying that they improve the quality of internal controls through internal controls auditing. This paper concludes that Big 4 firms produce a higher audit quality level than non-Big 4 firms, and this quality difference iS related to how an audit objective is interpreted and implemented.
文摘Using China A-shares capital market data of 2002-2005, this paper supports the conclusion that client importance is negatively associated with audit quality. Further, we partition the sample into Big 4 and Non-Big 4. In subgroup of Non-Big 4, client importance is negatively associated with audit quality statistically. However, this association isn＇t statistically significant in Big 4 subgroup. The conclusion is significant for the development of CPA finns.
文摘The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit quality in the audit is one of the most concerned by the public. Any product quality and price are equivalent, the higher the cost of investment, the better the quality, the higher the price. The audit process is also the case. This paper is mainly based on the relevant audit fees and audit quality is the summary of the existing research results on the relationship between the two for further exploration, consider the audit pricing regulation and audit industry brand and scale effect, and put forward to improve the audit fees and audit quality relationship advice.
文摘＂Independent Audit basic norms＂ pointed out independent audit is the CPA entrusted by law, to be conduct an independent review of the accounting statements and related information and issue the audit opinion.＂ In the stock market, an independent audit is an important means to achieve fair presentation of financial statements by SFC-authorized accounting firm to conduct an independent audit of listed companies. In the open accounting services market, the independent audit is the most occupied audit resources, the most important business, and therefore the business is also subject to severe supervision of the SFC. Its value lies in perform forensic of the financial statements information of listed companies, and the higher the quality, the more it can reduce the risk of material misstatement of the financial statements, which is the need to strengthen and improve audit quality. Our independent audit market originated in the 1980s, along with the reform and opening up, China＇s economy is experiencing rapid growth, the demand for high quality audit increasingly enhanced. Audit activities have the nature of external and information asymmetry. External audit refers to it have an impact to investors, government departments and the other public stakeholders. Information asymmetry refers to the information asymmetry between the auditor and the audited entity, but due to the presence of asymmetric information and other reasons, the interests of stakeholders will be hurt by false information Government regulation as a model audit industry control, either in foreign or domestic, have played an irreplaceable role, especially in the socialism of China, plays a leading role. For example, when Enron bankruptcy United States speedly issue SOX in 2002 to strengthen the role of government regulation, effectively preventing the conspiracy of the CPA and the audited entity and improve audit quality. Visiblely, the role of government regulation in the audit market is very important.
基金financial support from the National Natural Science Foundation of China(Nos.72402120,72432006 and 72372098)the MOE Project of Key Research Institutes of Humanities and Social Science in University(No.22JJD790093)+3 种基金the 111 Project(No.B18033)the Fundamental Research Funds for the Central Universities(No.2022110353)the University Synergy Innovation Program of Anhui Province(No.GXXT-2021-078)the Humanities and Social Sciences Research Project of Anhui Provincial Department of Education(No.2022AH010041).
文摘This study investigates the impact of an accounting firm's providing both an annual report audit and environmental,social and govemance(ESG)report assurance on its audit quality.We find that when the same accounting firm is responsible for both the annual report audit and ESG report assurance,this does not compromise the accounting firm's independence.On the contrary,it enhances audit quality through knowledge spillover effects and increased investment in reputational capital.Additional evidence suggests that providing ESG report assurance also prompts the accounting firm to allocate more audit resources,thereby influencing audit quality.In cross-sectional results,consistent with expectations,we find that the knowledge spillover and reputational effects of ESGreport assurance are more pronounced for companies with weaker intemal controls,non-A+H share companies and companies receiving lower levels of analyst attention.Finally,we document that having the same accounting firm responsible for ESG report assurance and annual report audit increases audit fees and also contributes to enhanced firm value.This study comprehensively highlights the influence of ESG report assurance on audit quality,and its findings offer valuable insights into the economic consequences of ESG report assurance practices.
基金financial support from the National Natural Science Foundation of China(No.72272132).Pro fessional English language editing support provided by AsiaEdit(asiaedit.com).
文摘Corporate online sales data are embedded with high informational value.Focusing on auditors who are concerned about information quality,this paper systematically tests the governance effect of releasing third-party online sales data on audit quality.Using the first aggregate release of online sales data in 2018 as an exogenous shock,we use the difference-in-differences model and empirically demonstrate that the audit quality of firms with released online sales data improves significantly after 2018.Subsequent analyses demonstrate that releasing online sales data has a governance effect by improving internal control quality,audit efficiency and audit prudence.The findings demonstrate that the aggregate release of third-party online sales data could have positive economic consequences.
文摘With the deep integration of digital technology and the real economy,AI auditing has emerged as a core paradigm that breaks through the pain points of traditional auditing,such as“sampling limitations,post-event lag,and reliance on manual labor”.This paper systematically reviews the theoretical connotations of AI auditing,reveals its current practical status,deeply analyzes four core challenges:data quality,ethical compliance,talent adaptation,and institutional synergy,and proposes feasible development paths from four dimensions:technological optimization,institutional construction,talent cultivation,and industry synergy.The research indicates that AI auditing needs to be“based on data elements,driven by technological innovation,with institutional guarantees as the bottom line,and talent adaptation as the core”,and achieve an upgrade from“tool assistance”to“governance synergy”under the promotion of new productive forces.
基金financial support from the National Natural Science Foundation of China(Nos. 71662021 and 71462014)
文摘With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009 to 2013.The results show that(1) there is generally no pervasive deterioration in audit quality resulting from auditors' work stress;(2) there is a significant negative association between work stress and audit quality in the initial audits of new clients;and(3) the perception of work stress depends on auditors' individual characteristics.Auditors from international audit firms and those in the role of partner respond more strongly to work stress than industry experts.Auditors tend to react more intensively when dealing with state-owned companies.We suggest that audit firms attach more importance to auditors' work stress and rationalize their allocation of audit resources to ensure high audit quality.
基金supported by the National Natural Science Foundation of China(Project Nos.71790603,72072190)the China Postdoctoral Science Foundation(Project No.2023M733331).
文摘We investigate the impact of industry information disclosure(IID)on audit quality in Chinese listed companies from 2010 to 2021,by constructing a staggered difference-in-differences model based on the implementation of the IID guidelines in the Shanghai and Shenzhen stock exchanges in 2013 as an exogenous shock.Audit quality is significantly improved after the implementation of the IID guidelines.We also use a parallel trend test,different measurements of key variables,propensity score matching,a placebo test and different samples,to ensure the validity of our findings.IID enhances audit quality by improving auditor independence,professionalism and audit engagement,particularly in firms with high-quality and numerous IIDs,high auditor rankings,strong auditor industry expertise,IIDs with a negative tone and low R&D investment.We demonstrate the effectiveness of the IID guidelines from the perspective of auditing.
文摘We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securities Qualifications as an exogenous shock.This policy requires audit firms to raise the sum of the cumulative compensation limit of their PII and PRF from 6 million to 80million yuan.It is found,first,that the capital market regards this policy revision as a signal to strengthen investor protection and responds positively;client firms with high audit risks have a stronger response.Second,auditors’governance of financial information has strengthened,resulting in the significant improvement of their clients’financial reporting quality,with a stronger effect on firms with higher earnings management risk.There is no evidence that audit firms pass the costs on to their clients.Finally,the mismatch between auditors and new client firms is alleviated.We show that in an emerging market with weak investor protection,establishing a sound risk-preparedness mechanism for audit firms and strengthening the capacity for civil compensation ex post greatly improve the adaptive degree between international auditing standards and the legal environment of China,thereby enhancing the overall service quality of the audit market.
文摘The objectives of this study are： （1） to explore current audit appointment practices by audit firms in Bahrain; （2） to look into the opinions of audit firms in Bahrain on potential effects provided by implementing mandatory audit firm rotation （audit quality）; and （3） to investigate audit firms＇ views in implementing mandatory audit firm rotation in Bahrain. To achieve these objectives, a questionnaire was developed and distributed to respondents that consist of all auditors working in audit firms in Bahrain. The findings indicated that there is a significant relationship between mandatory audit firm rotation and quality of audit. The study also indicated that longer partner tenure makes the auditor＇s performance lack the quality in the auditing process. The average mean for all questions of the hypothesis together is 2.73 with average standard deviation of 0.94 which is less than half of the mean. This means that there is no dispersion among respondents about the questions of the hypothesis. Also, the analysis shows that the t-value is 29.922, which is greater than the table critical value of t （1.66）, and the p-value obtained is 0.000 which is less than the value of significance at p 〈 0.05. These results confirm statistically that there is a significant relationship, so the null hypothesis is rejected and the alternative hypothesis is accepted.
文摘The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an auditor certificate.Questionnaire method was used in the research.In the evaluation of the data,frequency,mean,and standard deviation were used as descriptive statistical methods.In addition,t-test and one-way ANOVA test were used to compare the data between independent groups.Research results show no significant difference between the opinions of the independent auditors according to various variables.
