Do accounting firms change strategy through office managing partner appointments? Evidence from the U.S

Mowchan, Michael J.

doi:10.1016/j.aos.2023.101442

Accounting, Organizations and Society

2023

DOI: 10.1016/j.aos.2023.101442

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Do accounting firms change strategy through office managing partner appointments? Evidence from the U.S

Michael J. Mowchan

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2024

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Cited by 3 publications

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Client restatement announcement, audit office human capital investment, and audit quality improvements

Aobdia,

Liu,

et al. 2024

Journal of Accounting and Economics

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Client restatement announcement, audit office human capital investment, and audit quality improvements

Aobdia,

Liu,

et al. 2024

Journal of Accounting and Economics

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Leadership ability: Labor market outcomes, organizational benefits, and talent management in the auditing profession

Dong,

Kallunki,

Nilsson

et al. 2024

Contemporary Accting Res

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Leadership is considered a core competency for auditors. This study examines how auditors' leadership ability affects their labor market outcomes and audit firm performance. Using Swedish military data on qualified auditors (CPAs), we first show that auditors' leadership ability, measured at around age 18, is a strong predictor of their income and career success. However, our results also suggest that the audit labor market compensates for auditors' leadership ability at a much later stage than the general labor market. Second, we examine whether the value of leadership ability derives from higher‐quality auditing, commercial performance, or both. We find strong evidence that leadership ability enhances auditors' commercial performance and some evidence on leadership ability being associated with higher audit quality. Third, at the audit firm level, we find that auditors' leadership ability significantly benefits audit firm performance measured as client portfolio size and audit firm profitability. Finally, we investigate leadership talent attraction and retention in the auditing profession. We find that the auditing profession attracts better leadership talent than the general labor market. Although nearly a quarter of CPAs leave the profession over the sample period, there is no significant difference in leadership ability between those who stay and those who leave. Overall, our results have important practical implications for audit firms' talent management.

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Political Turnover and Audit Opinion: Evidence from China

He,

Pan,

Tian

et al. 2024

Auditing: A Journal of Practice &Amp; Theory

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SUMMARY In this study, we examine how political turnover influences auditor reporting behavior by focusing on the turnover of Chinese provincial governors. We predict that the Big 10 audit firms tend to report more conservatively to counter the uncertainties induced by governor turnover, whereas local small audit firms would report more aggressively to help governors conceal local negative information. Using 11,405 audits conducted in the Chinese economy, we find that the Big 10 audit firms report more Modified Audit Opinions (MAOs), whereas local small audit firms render more clean opinions in the pre-turnover than other nonturnover years. We also find that: (1) audit firms readjust their reporting behavior after governor turnover ends; and (2) governor turnover can be well anticipated one year ahead. Overall, our study suggests that political turnover wields a significant influence on auditor reporting behavior and this influence further varies across audit firms. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: D72; M42; M38; M48.

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Do accounting firms change strategy through office managing partner appointments? Evidence from the U.S

Cited by 3 publications

References 44 publications

Client restatement announcement, audit office human capital investment, and audit quality improvements

Client restatement announcement, audit office human capital investment, and audit quality improvements

Leadership ability: Labor market outcomes, organizational benefits, and talent management in the auditing profession

Political Turnover and Audit Opinion: Evidence from China

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