Auditor Reputation: the International Empirical Evidence

Moizer, Peter

doi:10.1002/(sici)1099-1123(199702)1:1<61::aid-ija4>3.0.co;2-4

Cited by 101 publications

(105 citation statements)

References 29 publications

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“…There are many other factors which determine a higher or a lower level of the fees charged by the auditor from his clients. The literature about the factors that influence the audit fees is voluminous (Simunic, 1980, O'Keefe et al, 1994Ezzamel et al, 1996;Moizer, 1997, Craswell and Francis, 1999, McMeeking, 2000, Niemi, L., 2002, Cobbin, Ph. E., 2002, Nikkinen, J, Sahlström, P., 2004, Carson, E., Fargher, N., 2007, Boo, E., Sharma, D., 2008, Hay, D., Knechel, W.R., Ling, H., 2008, Zaman, M., Hudaib, M., Haniffa, R., 2011, Fukukava, H., 2011.…”

Section: Audit Fees -General Frameworksupporting

confidence: 91%

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

Chersan¹,

Robu²,

Carp³

et al. 2012

CIBIMA

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According to the International Standards on Auditing, audit fees are the amount that remunerates the financial auditor's activity, the certification of financial statements. The Profession Code states that these fees should be calculated in an objective way and the auditor's independence shouldn't be influenced by them. This study aims to identify the determinants of the audit fees, by testing the existence of a circular causality in the connection between audit fees and the financial performance of a NYSE-quoted company. The analysis is based on a sample of the first 100 companies (NYSE quoted) of the Top 500 Fortune, except for the companies in the investment funds and insurances field. In the study there were tested and validated the following working hypothesis: "the level of the audit fees is mainly influenced by the company's capacity to continue its activity", "the prestige of the audited company contributes to the decrease of the audit fees" and "the reduced fees level, paid by the customer audited by one of the Big4 companies in this exercise, contributes to the future prestige increase". For data analysis there were used linear regression analysis (simple and multiple) and the variance analysis (ANOVA). Research results indicate the existence of a circular causality, bidirectional, on the level of the relationship between audit fees and financial performance. For data processing, in the study there were used statistical software SPSS 19.0 and AMOS 16.0.

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Section: Audit Fees -General Frameworksupporting

confidence: 91%

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

Chersan¹,

Robu²,

Carp³

et al. 2012

CIBIMA

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“…As far as Swedish auditors are concerned, our findings are also in line with the previous studies which declare that also gender (Ittonen et al, 2013;Ittonen & Peni, 2012;Giacomino & Eaton, 2003), position (Gundry & Liyanarachchi, 2007;Liyanarachchi & McNamara, 2007), experience (Cianci & Bierstaker, 2009;Coram et al, 2004), number of clients (DeAngelo, 1981;Coram et al, 2003;Francis & Wilson, 1988), local office size (Francis & Yu, 2009), auditors asking for more time (Liyanarachchi & McNamara, 2007;Ettredge et al, 2008) and audit firm (Krishnan & Schauer, 2000;Francis & Krishnan, 1999;Mutchler et al, 1997;Moizer, 1997;Deis & Giroux, 1992;Palmrose, 1988;DeAngelo, 1981) can affect AQ.…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

“…Krishnan & Schauer, 2000;Francis & Krishnan, 1999;Mutchler et al, 1997;Moizer, 1997;Deis & Giroux, 1992;Palmrose, 1988;DeAngelo, 1981). In this study we control for audit firm size by using three dummy variables.…”

Section: -Local Office Size (Los)mentioning

confidence: 99%

What explains the extent and content of social disclosures in Swedish municipalities’ annual reports

2011

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This paper is aimed at explaining how time budget pressure influences audit quality in the Swedish context. A hypothesis is deduced and tested through a survey sent to Swedish auditors.The Swedish context provides a special setting since audit firms and auditors have been facing new pressures due, for example, to the removal of statutory audits for a majority of the companies in Sweden. The findings show that time budget pressure lowers the quality of audits performed by Swedish auditors, but it is not the only explanation. Audit quality is also related to other factors such as gender, position, experience, number of clients, local office size and audit firm. Thus, the model is useful for explaining the factors influencing audit quality and could be used and expanded in future studies. The study also has practical implications showing that when trading-off between audit efforts and available resources and setting time budgets for each audit assignment, audit firms should also consider the personal characteristics of the auditors.

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“…Majority of literature measure indirect method based audit quality (via surrogate), including literature providing some evidence of fees (Copley, 1991;Moize, 1997), litigation and resolution (Palmrose, 1988), earning forecast accuracy (Behn et al, 2008), earnings response coefficients (Teoh & Wong, 1993), earnings management (Becker et al, 1998), users' perceptions (Boon, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

Are Audits of Financial Statements Born Unequal?

Tran¹,

Doan²,

Bui³

et al. 2017

ABR

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Audit is getting more and more importance in assuring the reliability of financial information including financial statements for all parties. Commonly, quality of an audit is viewed as probability that financial reports are free from material irregularities. In the previous literature, there is a positive relationship between size of audit firm and audit quality that has long been understood. This has resulted in many publications to gather evidence of differential audit quality relating to audit firm size. In consequence, the conclusion has been focused that bigger audit firms produce higher audit quality than smaller ones. However, the collapse of many big international audit firms, typically Arthur Andersen has reduced the statement that large audit firms have higher audit quality than small ones. Therefore, this study looks into audit quality basing on the extent of compliance with disclosure requirements pertaining to goodwill impairment of large listed firms in Hong Kong context in the second year transition to IFRS. We found that audit firm identity appears to be a substantial variation, in which compliance levels changed significantly among auditors in the context of Hong Kong.

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Auditor Reputation: the International Empirical Evidence

Cited by 101 publications

References 29 publications

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

What explains the extent and content of social disclosures in Swedish municipalities’ annual reports

Are Audits of Financial Statements Born Unequal?

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