The Association Between Changes in Auditor Provided Tax Services and Long-Term Corporate Tax Avoidance

Hogan, Brian; Noga, Tracy

doi:10.2139/ssrn.1539637

Cited by 16 publications

(21 citation statements)

References 41 publications

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“…These results provide evidence that the association of individual auditors who are also chartered tax consultants is assisted by the provision of tax confirmation services. This finding suggests consistent with prior research that rendering additional services plays an important role in auditors' assessment (Christensen et al 2015;Gleason and Mills 2011;Hogan and Noga 2012). Because the coefficient on the control variable Taxfee is insignificant or significantly positive, impaired auditor independence is not an issue as suggested earlier.…”

Section: Tests For Knowledge Spillover Effectssupporting

confidence: 89%

“…Prior international studies interpret auditors' association with tax avoidance as reflecting the impact of knowledge spillover effects (Christensen et al 2015;Gleason and Mills 2011;Hogan and Noga 2012;McGuire et al 2012). To get a better understanding of the association between tax certified individual auditors and effective tax rates, I examine in further tests whether knowledge spillover effects may be also relevant for the associations found so far.…”

Section: Tests For Knowledge Spillover Effectsmentioning

confidence: 99%

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Tax certified individual auditors and effective tax rates

Frey

2017

Bus Res

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This study examines how the appointment of tax certified individual auditors is associated with reported effective tax rates of corporate clients. The study uses a unique German institutional setting which makes it possible to track individual auditors that are also certified tax consultants and sign the audit opinion.Empirical results indicate that tax certified individual engagement partners are associated with higher effective tax rates. Further tests reveal that this association also exists for individual parent company financial statements and that it is stronger when tax confirmation services are provided to the audit client. My findings enhance the understanding of the role of individual auditors.Keywords Tax certified individual auditor Á Effective tax rate Á Knowledge spillover JEL Classification M41 Á M42 Á H26

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Section: Tests For Knowledge Spillover Effectssupporting

confidence: 89%

Section: Tests For Knowledge Spillover Effectsmentioning

confidence: 99%

Tax certified individual auditors and effective tax rates

Frey

2017

Bus Res

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“…Thus, they proved that the auditor's expertise can be considered an important factor in determining the level of tax avoidance. Hogan and Noga (2012) also concluded that there is a significant negative relationship between auditor tax services reduction and the tax paid by the company over the long-term. In general, companies that receive tax services from auditors show more tax savings than those that do not use the tax services of an auditor.…”

Section: Theoretical Framework Literature and Hypotheses Developmentmentioning

confidence: 99%

The effect of auditor characteristics on tax avoidance of Iranian companies

Salehi

Tarighi

Shahri

2020

JABES

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Purpose The purpose of this paper is to investigate the relationship between auditor characteristics and the level of tax avoidance in an emerging market. Design/methodology/approach In this regard, the effect of various factors such as auditor tenure, auditor industry specialization, audit reports and audit fees on tax avoidance was examined. The study sample includes listed companies in the Tehran Stock Exchange. The time period of study is six years from 2011 to 2016. Also in this study, firm size, leverage, firm age and auditor size were controlled. Findings The results of this research were determined in four hypotheses. First and second hypotheses that explore the relationship between auditor tenure and auditor industry specialization with tax avoidance were not confirmed. But the results showed a significant relationship between the type of audit opinions and audit fees with tax avoidance. Originality/value The current study investigates the auditor characteristics on tax avoidance in a developing nation of Iran and the results may helpful the developing countries.

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“…APTS equals 1 if the proportion of tax service fees to total fees paid to the auditor exceeds the median proportion by year (0 otherwise). We use the median proportion to account for significant changes in the tax practices of accounting firms over the last several years (Maydew and Shackelford 2007;Hogan and Noga 2012) and to control for immaterial services not likely to impact the engagement. 14…”

Section: Measure Of Auditor-provided Tax Servicesmentioning

confidence: 99%