Audit quality, accruals quality and the cost of equity in an emerging market: Evidence from Vietnam

Le, Ha Thi Thu; Tran, Ha Giang; Vo, Xuan Vinh

doi:10.1016/j.irfa.2021.101798

Cited by 11 publications

(7 citation statements)

References 54 publications

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“…While in Vietnam we find that the Big Four auditors do a good job to maintain audit quality and independence, many participants indicated that the smaller auditors seem under pressure to retain clients and satisfy the requests of their clients, thus compromising auditor independence and indicating problems with the effectiveness of the audit reforms implemented since 2011. Le et al (2021) provide empirical findings that support some of these concerns. They report using a sample of Vietnamese listed companies, that organisations audited by a Big Four auditor are associated with a lower cost of equity than organisations with a non-Big Four auditor.…”

Section: Findings 41 Ethical Issues Auditor Independence Competition ...mentioning

confidence: 80%

Audit quality and independence concerns after major audit reforms within a developing country: stakeholder perceptions from Vietnam

Nguyen

Kend

Luong

2022

MAJ

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Purpose The purpose of this exploratory study is to investigate the perceptions of key stakeholders in Vietnam on the impact on audit quality and independence after major reforms to audit. Design/methodology/approach Using new institutional sociology, this study seeks to explain how Vietnamese external auditors and accountants have responded to audit reforms and provides perceptions on how audit quality and independence may have been impacted. This study draws on semi-structured interviews conducted with 33 highly experienced participants, representing various stakeholder groups in Vietnam. Findings The findings indicate that after almost a decade since the full implementation of the Law of Independent Audit (2011) in Vietnam, the audit and assurance market in Vietnam is characterised by low quality audits, a lack of compliance with standards and auditor independence concerns, specifically amongst the smaller audit practitioners. Participants indicated that competition for new audit clients or retaining existing clients is a priority over improving audit quality and independence. Originality/value By examining a combination of different factors relating to audit quality and independence, the authors further demonstrate the impact of these factors in Vietnam, helping audit professionals and regulators to have a better and more meaningful understanding of that state of the audit profession. This study also considers audit concerns or issues arising because of the COVID-19 pandemic in Vietnam.

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Section: Findings 41 Ethical Issues Auditor Independence Competition ...mentioning

confidence: 80%

Audit quality and independence concerns after major audit reforms within a developing country: stakeholder perceptions from Vietnam

Nguyen

Kend

Luong

2022

MAJ

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“…We sent survey questionnaires to 500 SMEs using the convenient sampling method; the number of quality-assured survey questionnaires returned was 145. Sampling in countries like Vietnam is considered very important by previous studies (Le et al, 2021;Nguyen, 2022a;Nguyen, 2022d;Nguyen, 2023c;Phan et al, 2021;Vo, 2020). Convenient sampling is a non-probability sampling method wherein participants are selected based on their easy accessibility and availability to the researcher rather than through a random or systematic approach.…”

Section: Methodsmentioning

confidence: 99%

Impact of ERP System Implementation on Accounting Information Quality in Vietnamese SMEs

Tran,

Nguyen

2024

JAFAS

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This research explores the influence of enterprise resource planning (ERP) system implementation on the quality of accounting information in Vietnamese small and medium-sized enterprises (SMEs). ERP systems, designed to unify and streamline information across various business processes such as accounting, finance, supply chain, and human resources, are critical in integrating internal and cross-business information. Given their complexity and cost, the effective implementation of ERP systems necessitates proficient users. This study, employing the Ordinary least squares (OLS) method for analysis, gathered data through purposive sampling from 145 users across 117 Vietnamese SMEs. The analysis, based on regression and complemented by t-tests, examined the hypothesized relationship between ERP implementation and accounting information quality enhancement. The findings reveal a significant positive correlation between ERP system implementation and improved accounting information quality, underscoring the importance of ERP systems in elevating the standard of accounting practices in SMEs. These insights are crucial for understanding the broader implications of ERP systems in business management and financial reporting.

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“…Auditor yang mempunyai kualitas audit yang baik akan membuat investor percaya terhadap informasi yang dikeluarkan oleh perusahaan yang membuat investor tidak ragu lagi untuk melakukan investasi, oleh karena itu eksternal pengguna laporan keuangan biasanya membuat penilaian tentang kualitas audit menggunakan indikator tidak langsung yang dapat diamati seperti hal nya dari dari sisi ukuran komposisi gender komite audit, keterlibatan atau adanya struktur kepemilikan, dan berapa kali melakukan rotasi audit (Thi et al, 2021).…”

Section: Kualitas Auditunclassified

Menilai Audit Firm Rotation, Gender Komite Audit, Struktur Kepemilikan, Audit Fee Dan Kualitas Audit – Studi Kasus Pada Industri Perbankan Indonesia

Gozali

Hamzah²,

Listya³

2023

Owner

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Poor audit quality has become the noteworthy issue in recent years, particularly in developing countries such as Indonesia. This study therefore aims to bridge the information and audit quality gap in Indonesia banking industries by examining the relationship between audit firm rotation, audit committee gender, and ownership structure on audit quality. Quantitative approach by employing logistic regression was used as the analysis method. The sample in this study was banking companies listed in Indonesia Stock Exchange which obtained 80 year-observation samples in the period of 2011-2020. The results of this study indicate that audit fees have a significant effect on audit quality. Meanwhile, audit firm rotation, audit committee gender, and ownership structure which are proxied by institutional ownership, managerial ownership, government ownership have no significant effect on audit quality.

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Audit quality, accruals quality and the cost of equity in an emerging market: Evidence from Vietnam

Cited by 11 publications

References 54 publications

Audit quality and independence concerns after major audit reforms within a developing country: stakeholder perceptions from Vietnam

Audit quality and independence concerns after major audit reforms within a developing country: stakeholder perceptions from Vietnam

Impact of ERP System Implementation on Accounting Information Quality in Vietnamese SMEs

Menilai Audit Firm Rotation, Gender Komite Audit, Struktur Kepemilikan, Audit Fee Dan Kualitas Audit – Studi Kasus Pada Industri Perbankan Indonesia

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