Audit office size, audit quality and audit pricing: evidence from small- and medium-sized enterprises

Sundgren, Stefan; Svanström, Tobias

doi:10.1080/00014788.2012.691710

Cited by 67 publications

(62 citation statements)

References 34 publications

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“…The results of this study are not consistent with prior studies (e.g. Rezaei and Shabani, 2014;Sundgren and Svanström, 2013) who argue that bigger audit firms often provide better assurance services. Except for the audit firms in the Big 4 group, the findings suggest that smaller audit firms provide better audit quality while bigger audit firms does not necessary In Vietnam context, although larger audit firms have a better internal control system, however, larger audit firms in Vietnam normally have larger clients and gain more benefit to indulging clients more than smaller audit firms, which lead to the dependence of auditors on their clients.…”

Section: Discussioncontrasting

confidence: 56%

“…The result of this study is not consistent with prior studies (e.g. Hoitash et al, 2007;Simunic, 1980;Sundgren and Svanström, 2013), who argued that low audit fees lead to the decreasing number of auditors and shorter time of auditing which results in lower audit quality. In contrast, the result of this study suggests that high audit fees can lead to an independence issue for auditors.…”

Section: Discussioncontrasting

confidence: 56%

“…( ISSN 1946-052X 2017 evaluate audit quality as audited financial statements are working outcomes of both managers and auditors (DeFond and Zhang, 2014;Sundgren and Svanström, 2013). Indeed, abnormal portion of accruals is initiated by managers in order to control earnings that benefit for themselves rather than other financial users (Tritscher, 2013).…”

Section: Da T = Ta T -Nda T = (Np T -Ncf T ) -(β 1 (1/a T-1 )+ β 2 (mentioning

confidence: 99%

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Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Pham¹,

Duong²,

Pham³

et al. 2017

AJFA

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Audit quality is considered as an essential factor affecting the reliability of financial information. The aim of this study is to assess the effects of audit firm characteristics, including audit reputation, audit fees and audit firm size, on audit quality. A sample of 192 companies listed on Hanoi and Ho Chi Minh Stock Exchange for the period of 2006-2014 was selected. Multiple regression was used to analyze the data. The findings show that Big 4 auditors in Vietnam provide high audit quality than non-Big 4 auditors. Interestingly, in Vietnam context, except for the audit firms in the Big 4 group, the findings suggest that smaller audit firms provide better audit quality. Additionally, the results reveal that the more audit fees the auditors receive, the lower audit quality they provide. The critical role of audit quality has attracted significantly scholarly attention, however, prior studies have mainly focused on firms in developed countries. Little is known about audit quality in an emerging economy context such as Vietnam. This study adds to the limited number of studies on audit quality of listed companies in emerging economies.

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Section: Discussioncontrasting

confidence: 56%

Section: Discussioncontrasting

confidence: 56%

Section: Da T = Ta T -Nda T = (Np T -Ncf T ) -(β 1 (1/a T-1 )+ β 2 (mentioning

confidence: 99%

See 1 more Smart Citation

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Pham¹,

Duong²,

Pham³

et al. 2017

AJFA

View full text Add to dashboard Cite

show abstract

“…The decreased insurance role and the lower agency costs in SMEs may lead to a lower demand for high quality auditors (Chaney, Jeter, & Shivakumar, 2004). On the other hand, although Middle-Tier auditors can be a viable alternative to Big 4 auditors, the previous literature do not usually consider them (Boone et al, 2010;Sundgren & Svanström, 2013). We study whether Big 4 and Middle-Tier auditors have a similar perceived audit quality for SMEs.…”

Section: Audit Quality and Cost Of Debtmentioning

confidence: 89%

“…Secondly, it extends previous research on auditor choice and the pricing of debt capital for private firms (Cano Rodríguez & Sánchez Alegría, 2012;Fortin & Pittman, 2007). In this case, unlike previous papers, we focus on the SMEs, and also consider the role of Middle-Tier auditors, which have also been taken by Boone, Khurana, and Raman (2010) and Sundgren and Svanström (2013). Finally, within the context of revision of the audit requirement for SMEs, examining the additional value that auditors can offer to 268 D. Huguet and J.L.…”

Section: Introductionmentioning

confidence: 96%

Cost of debt capital and audit in Spanish SMEs

Huguet

Cabedo

2014

Spanish Journal of Finance and Accounting / Revista Española de

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Evidence about the effect of voluntary audits on the cost of debt is mixed, and there is no research about the effects of mandatory audits and the non-compliance with the audit requirement. Using a sample of Spanish SMEs, where some companies are exempt from audit and some are mandatorily audited, we examine if audits, either mandatory or voluntary, help to reduce the cost of debt. We do not find a significant association between voluntary audits and cost of debt, whereas companies that breach the audit requirement have a higher cost of debt than the mandatorily audited ones. This suggests that differences in the cost of debt between audited and unaudited companies are associated with a "punishment" for companies that shun the mandatory audit rather than a "reward" for voluntarily audited companies. Moreover, within audited SMEs, we do not find that those audited by large auditors have a lower cost of debt.La evidencia sobre la relación entre el coste financiero y la auditoría voluntaria es mixta, y no existe literatura empírica sobre los efectos del no cumplimiento con la auditoría obligatoria. Con una muestra de pymes españolas, una parte de las cuales está obligada a auditarse y otra está exenta, examinamos si la auditoría, tanto obligatoria como voluntaria, ayuda a la reducción del coste financiero. No encontramos una relación significativa entre la auditoría voluntaria y el coste financiero, mientras que las pymes que incumplen con el requisito de auditarse tienen un coste financiero mayor que las auditadas obligatoriamente. Ello sugiere que las diferencias en el coste financiero entre pymes auditadas y sin auditar están asociadas a un "castigo" para aquellas que evitan la auditoría obligatoria, en lugar de a una "recompensa" para las auditadas de modo voluntario. Entre las pymes auditadas, no encontramos que las auditadas por grandes auditores tengan un menor coste financiero.

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Individual Auditor Conservatism After CSRC Sanctions

Sun

Cahan

2014

J Bus Ethics

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Audit office size, audit quality and audit pricing: evidence from small- and medium-sized enterprises

Cited by 67 publications

References 34 publications

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Cost of debt capital and audit in Spanish SMEs

Individual Auditor Conservatism After CSRC Sanctions

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