Industry Specialization by Auditors

Hogan, Chris E.; Jeter, Debra C.

doi:10.2308/aud.1999.18.1.1

Cited by 300 publications

(202 citation statements)

References 6 publications

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“…In addition, in contrast, some specialist auditors may provide a non-differentiated product at discounted fees or provide higher audit quality. In this context, Hogan & Jeter (1998) provides evidence of the link between industry experience and audit quality arguing that firms with industry experience have financial savings and gains in audit quality.…”

Section: Industry Experiencementioning

confidence: 99%

Overview of Surrogates to Measure Audit Quality

Hussein¹,

Hanefah²

2013

IJBM

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After the collapse of Arthur Andersen in 2002, the auditing profession has faced increasing pressure from external parties to enhance and improve audit quality. These pressures led to a continued need to study the factors that affect audit quality. Until present, there is no agreement among researchers about the definition and factors of audit quality. To date, the issue of how audit quality is measured remains a matter of controversy and disagreement. Previous studies used alternatives to measure audit quality. This paper reviews both the arguments for and against for these studies. Although, the importance of these alternatives and its potential contribution on audit quality have been emphasized, they are not a justification to ignore audit characteristics that could have significant impact on audit quality. This paper contributes to audit literature and represents a brief overview of reviews both the arguments for and against of using audit quality alternatives in previous studies over the past 30 years. Thus it provides a basis for discussing several potentially rich factors for future research on audit quality.

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Section: Industry Experiencementioning

confidence: 99%

Overview of Surrogates to Measure Audit Quality

Hussein¹,

Hanefah²

2013

IJBM

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“…Thus, most regulated industries are highly concentrated, consistent with evidence in the US. 43 Below this level of market share, there are many sectors where specialists exist, since a market share of only 15% is often taken to indicate specialism. 44 …”

Section: Concentration By Industry Sectormentioning

confidence: 99%

And then there were four: A study of UK audit market concentration ‐ causes, consequences and the scope for market adjustment

Beattie

Goodacre²,

Fearnley

2003

Journal of Financial Regulation and Compliance

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While concentration measures are a good indicator of market structure, the link with competitiveness is more complex than often assumed. In particular, the modern with the impact of the Smith Report on audit committees will serve to reduce these ratios. Another finding is that audit firms with expertise in a particular sector appeared to earn significantly higher non-audit fees from their audit clients in that sector. The paper thus provides a solid empirical basis for debate. The subsequent discussion considers the implications for companies and audit firms of the high level of concentration in the current regulatory climate, where no direct regulatory intervention is planned.

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“…I follow Hogan and Jeter (1999) and select client assets for my market share proxy. If the engaged auditor or the incumbent auditor for non-dismissing control observations audits the most client assets in an industry, the AudIndExpt variable is coded 1 for switched to industry expert.…”

Section: Methodology Of the Researchmentioning

confidence: 99%

Former Audit Partners on Audit Committees: Implications for Russian Corporate Governance

Scalan

2017

JEECAR

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The Moscow Exchange in conjunction with the Organization for Economic Cooperation and Development (OECD) continues to address improvements in Russian corporate governance by conducting annual roundtables (OECD, 2017). My research relates to corporate governance provided by audit committees. I examine relationships between former audit partner (FAP) audit committee members and auditors, via a network similar to the interlocking directorate. Using a dataset of U.S. auditor dismissals, I construct unique network variables measuring the relational ties between FAP audit committees and auditors. I find some evidence suggesting ties created by former audit partners may increase auditor switching possibly indicating impaired auditor independence.This outcome suggests implications for Russian corporate governance because it is likely Russian Boards of Directors would experience similar circumstances as their U.S. counterparts. As the Moscow Exchange continues its partnership with the OECD to improve corporate governance, audit quality and auditor independence should be considered in the dialogue.

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Industry Specialization by Auditors

Cited by 300 publications

References 6 publications

Overview of Surrogates to Measure Audit Quality

Overview of Surrogates to Measure Audit Quality

And then there were four: A study of UK audit market concentration ‐ causes, consequences and the scope for market adjustment

Former Audit Partners on Audit Committees: Implications for Russian Corporate Governance

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