Audit Committee Characteristics and Auditor Dismissals following “New” Going-Concern Reports

Carcello, Joseph V.; Neal, Terry L.

doi:10.2308/accr.2003.78.1.95

Cited by 569 publications

(461 citation statements)

References 17 publications

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“…Moore et al (2006) argued that audit committee has to be responsible for selecting the external auditor and not the managers. The extant research on auditor choice has linked audit committee characteristics and auditor choice in individual tests (Abbott and Parker, 2000;Archambeault and DeZoort, 2001;Carcello and Neal, 2003;Lee et al, 2004). These studies have resulted in contradictory and inconclusive results.…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

“…Sixth, companies that have changed their auditors because of a mandatory rotation policy (DeBerg et al, 1991). Seventh, companies that are engaged in banking, insurance or diversified financial services are excluded (Hudiab and Cooke, 2005;Chan et al, 2007;Jackson et al, 2008;Desender et al, 2009;Carcello and Neal, 2003). Finally, companies that their auditors resign are also eliminated (Carcello and Neal, 2003).…”

Section: Sample and Datamentioning

confidence: 99%

“…First, companies that have experienced a bankruptcy (DeFond, 1992;Lee et al, 2004;Menon and Williams, 2008;Carcello and Neal, 2003). Second, companies that have selected a new auditor twice or more during the period considered in this study are eliminated from the sample (DeFond, 1992;Khalil et al, 2010;Chan et al, 2007).…”

Section: Sample and Datamentioning

confidence: 99%

“…An important role of monitoring has been played by the audit committee in assuring the quality of financial reports and corporate accountability. The audit committee's role stands in the middle between the board of directors and the external auditor in bridging the information asymmetry, facilitating the monitoring process, and enhancing the auditor independence (Carcello and Neal, 2003;Mautz and Neumann, 1977). Committee members can attempt to persuade management to select a more knowledgeable auditor with greater reputation (Carcello and Neal, 2003;Kaplan and Mauldin, 2008).…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

“…The audit committee's role stands in the middle between the board of directors and the external auditor in bridging the information asymmetry, facilitating the monitoring process, and enhancing the auditor independence (Carcello and Neal, 2003;Mautz and Neumann, 1977). Committee members can attempt to persuade management to select a more knowledgeable auditor with greater reputation (Carcello and Neal, 2003;Kaplan and Mauldin, 2008). Effective audit committee should block unjustified auditor switches as an incidence of opinion shopping (Archambeault and DeZoort, 2001).…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

See 4 more Smart Citations

Internal corporate governance mechanisms and audit quality: Evidence from GCC region

Hassan¹,

Aljaaidi²,

Abidin³

et al. 2018

Int. j. adv. appl. sci.

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Using the suggestions of agency theory alone for predicting the auditor change behavior in the context of GCC countries is inappropriate because they were developed in countries with mature market-oriented economies. In this study, we examine the association of board of directors effectiveness (board of directors independence, size, financial expertise, meetings, nationality, international experience and CEO duality) and audit committee effectiveness (audit committee independence, size, financial expertise, meetings, nationality and international experience) with the incidence of auditor change among Gulf Cooperation Council (GCC) public listed companies for the period 2005-2010. We posit that using an integration framework of agency theory, managerial grid theory, and attractionselection-attrition has more explanatory power to predict auditor change behavior in GCC setting, taking into account economic and behavioral issues. The results show that only board of directors' effectiveness is significantly associated with the incidence of auditor change. This study finds out that the economic and the behavioral activities are related to the audit demand in the GCC. Moreover, the study suggests that regulators, especially GCC stock exchanges, should force companies to disclose all relevant information related to auditor change in a transparent and timely manner, and increase law enforcement to enhance good corporate governance practices. For companies, this study proposes that they should put more emphasis on enhancing the role and the quality of the board of directors and audit committee members, as they are involved in the decision of auditor change.

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Section: Audit Committee Effectivenessmentioning

confidence: 99%

Section: Sample and Datamentioning

confidence: 99%

Section: Sample and Datamentioning

confidence: 99%

Section: Audit Committee Effectivenessmentioning

confidence: 99%

Section: Audit Committee Effectivenessmentioning

confidence: 99%

See 3 more Smart Citations

Internal corporate governance mechanisms and audit quality: Evidence from GCC region

Hassan¹,

Aljaaidi²,

Abidin³

et al. 2018

Int. j. adv. appl. sci.

View full text Add to dashboard Cite

show abstract

Do audit committee attributes influence integrated reporting quality? An agency theory viewpoint

et al. 2020

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The limits of financial disclosure in meeting the investors' needs have led to the request for reporting frameworks capable of incorporating information of different nature. Integrated reporting (IR), which is the latest novelty in organisational reporting practice, promises to bring together material financial and non‐financial information. IR has received considerable academic attention in recent years. However, little attention has been paid to the role of the audit committee in IR processes, despite the influence that this body has on disclosure, thanks to its supervisory and monitoring functions. This study bridges this gap by analysing the effect of the audit committee attributes on integrated reporting quality (IRQ) from an agency theory perspective. The regression analysis, conducted on a sample of 125 international firms, demonstrated a positive effect of size, independence and meeting frequency of the audit committee on IRQ and a non‐significant effect of financial expertise.

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Corporate social and environmental disclosure as a sustainable development tool provided by board sub‐committees: Do women directors play a relevant moderating role?

2021

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The aim of this research is to examine the impact of three audit committee characteristics on corporate social and environmental responsibility (CSR) disclosure: the existence of an audit committee, audit committee independence, and audit committee financial expertise. Moreover, this research analyzes the moderating effect of board gender diversity between these audit committees' attributes and CSR reporting. The results of analyzing 13,178 firm-year observations of non-financial companies show that the presence of an audit committee and audit committee financial expertise are positively associated with CSR disclosure. However, a higher proportion of non-executive directors in audit committees has a negative effect on the disclosure of CSR information. These findings suggest that some audit committees' features play an important role in ensuring the reporting of environmental, social, and economic information. Our evidence also indicates that the presence of female directors on boards increases the positive impact of financial expert membership of audit committees on CSR disclosure, while women directors moderate any negative effect of the percentage of independent directors on audit committees on CSR reporting by increasing the latter. In addition, female directors moderate the positive impact of the existence of an audit committee on the disclosure of CSR information by reducing the latter.

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Audit Committee Characteristics and Auditor Dismissals following “New” Going-Concern Reports

Cited by 569 publications

References 17 publications

Internal corporate governance mechanisms and audit quality: Evidence from GCC region

Internal corporate governance mechanisms and audit quality: Evidence from GCC region

Do audit committee attributes influence integrated reporting quality? An agency theory viewpoint

Corporate social and environmental disclosure as a sustainable development tool provided by board sub‐committees: Do women directors play a relevant moderating role?

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