Auditor tenure and audit quality in Spanish state-owned foundations

González-Díaz, Belén; García-Fernández, Roberto; López-Díaz, Antonio

doi:10.1016/j.rcsar.2014.04.001

Cited by 32 publications

(23 citation statements)

References 35 publications

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“…Over the last few decades the association between audit quality and auditor tenure has been constantly debated (e.g., Jackson et al, 2008;Daniels & Booker, 2011), especially after the failures of Enron and Worldcom. Belen et al, (2014) studied the auditor tenure association with audit quality by using a sample of 254 audits carried out on Spanish state-owned foundations between 2003 and 2010. The results reveal that audit quality, measured as the likelihood that an auditor will submit a qualified opinion, increases over the first five years of the relationship and then decreases.…”

Section: Audit Tenurementioning

confidence: 99%

Determinants of Audit Fees: Evidence from Jordan

Kikhia¹

2014

AFR

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This study sets out to examine the factors influencing the level of external audit fees paid by firms to their auditors in Jordan. Specific attention is focused on the investigation of the potential influence of auditee size, complexity of client, profitability, client risk, auditor size and auditor tenure on audit fees, by using the Sample which contains 117 non-financial Jordanian companies which listed on Amman Stock Exchang, meet the selection standards and have the applicable and appropriate financial data from 2010 until 2012 (351 observation). The current study strongly reinforces that greatest of prior studies results are also appropriate and applicable to the Jordanian audit market. Moreover, the current study provides further evidence connecting variables such as the auditor tenure effects and auditee risk which have been found to have an inconclusive relationship with the amount of external audit fees in prior studies. However, the auditee size seems to have been the key determinant of external audit fees. Furthermore, financial risk is found to be negatively and significantly associated with the level of external audit fees. On other side, empirical results found that the audit tenure has no significant relationship with audit fees. Finally, the current study is unique because it is the first to empirically examine factors impacting the level of audit fees in Jordan for a total of three years; it revisits the audit fee literature and highlights the important determinants that affect audit fees.

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Section: Audit Tenurementioning

confidence: 99%

Determinants of Audit Fees: Evidence from Jordan

Kikhia¹

2014

AFR

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“…Gonzalez-Diaz et al (2015) [4] analyzed the relation between auditor tenure and audit quality in the period 2003-2010 in Spain and concluded that the audit quality was reduced as the auditor tenure was increased, supporting the opinion that the establishment of legislation reduced the auditor tenure in companies under control. Vanstraelen (2000) [5] assumes that the long-term relation between the auditor and audited company increases the possibility substantially so as the auditor to issue a report without prejudices.…”

Section: Literature Reviewmentioning

confidence: 99%

BIG4 or Non-BIG4 Auditors: Their Impact on Audit Quality during the Global Financial Crisis

Kyriakou¹,

Dimitras²

2018

TEL

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The objective of this paper is to examine the relationship between auditor tenure and discretionary accruals as a proxy of audit quality. The main finding is that this relationship was found to be negative for BIG4 and non-BIG4 auditors in crisis and non-crisis periods, for both German and French companies. In addition, Italian and Spanish companies seem to interplay in crisis and non-crisis periods being either negative or not for BIG4 and non-BIG4 auditors. The findings imply that the larger the country, the better the audit quality and this seems to be confirmed by graphs and statistically by the onesample T-test.

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“…A general belief is that shorter tenure will protect the auditors' independence and help them issue the opinion they want without any economic hesitation (Choi, Choi, Gul, & Lee, 2015;González-Díaz, García-Fernández, & López-Díaz, 2015;Lennox, Wu, & Zhang, 2014). Auditor's understanding of a client will take time and it may result in the favor of the client, while the auditor might not be able to discover potential misstatements caused by auditor's adjustment to the client (Bandyopadhyay, Chen, & Yu, 2014;Cameran, Business and Economics Research Journal, 10(2):373-390, 2019 G. Can Francis, Marra, & Pettinicchio, 2015;Ewelt-Knauer, Gold, & Pott, 2013;Jenkins & Velury, 2012;Kwon, Lim, & Simnett, 2014).…”

Section: H2c0: Disclaimer Of Opinion Does Not Signal Earnings Managemmentioning

confidence: 99%

The Impact of Auditor Qualifications on Earnings Management of Companies Listed on the Borsa Istanbul Industrial Index

Can¹

2019

berj

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This research aims to reveal whether independent auditor's (as the real person and the legal entity) qualifications (audit firm size, audit opinion, audit gender, audit firm specialization, audit firm rotation, geographical difference) have any effect on earnings management via discretionary accruals and real activities manipulations by using a panel data regression analyses of 162 units over 5 years (2011-2015). According to the results, independent auditor qualifications (audit firm and engagement partner) has no impact on the real activities manipulation. The results show that an independent audit by Big-4 firms has a decreasing effect on discretionary accruals. Earnings management via discretionary accruals increases when the local audit firms conduct the audit. The audit firms with diversified expertise decrease the earnings management via accruals. The results also confirm that disclaimer of opinion signals an increase in the discretionary accruals in Borsa İstanbul.

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Auditor tenure and audit quality in Spanish state-owned foundations

Cited by 32 publications

References 35 publications

Determinants of Audit Fees: Evidence from Jordan

Determinants of Audit Fees: Evidence from Jordan

BIG4 or Non-BIG4 Auditors: Their Impact on Audit Quality during the Global Financial Crisis

The Impact of Auditor Qualifications on Earnings Management of Companies Listed on the Borsa Istanbul Industrial Index

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