Planned audit quality

Elitzur, Ramy; Falk, Haim

doi:10.1016/0278-4254(96)00024-5

Cited by 43 publications

(21 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Extant literature on audit quality suggests that LPs provide higher quality audits than non‐LPs (see, for example, Jackson et al 2008; Choi and Doogar 2005; Elitzur and Falk 1996; Craswell et al 1995; DeAngelo 1981). Audit quality is generally defined in the audit literature as the probability of an auditor detecting breaches in the client's accounting system and reporting these breaches.…”

Section: Research Questionsmentioning

confidence: 99%

The Differential Impact of the Force of Law Australian Auditing Standards

Hecimovic¹,

Martinov‐Bennie²

2011

Australian Accounting Review

View full text Add to dashboard Cite

This qualitative study explores whether the impact of the introduction of the legally enforceable Australian Auditing Standards (ASAs) differs between audit firms based on their size. It complements and extends the Australian Government's pre‐implementation April 2006 Regulation Impact Statement ( AUASB 2006 ) and Hecimovic et al.'s (2009) study exploring the perceptions of key stakeholders. The results of the current study, based on data from extensive interviews with auditors from small, medium and large audit firms, suggest that compliance with the legally enforceable ASAs does not appear to increase perceived audit quality or public confidence. The study also finds that the costs/benefits to small audit firms and their clients differ to those of medium and large firms, raising questions about the viability of smaller firms remaining in the audit market.

show abstract

Section: Research Questionsmentioning

confidence: 99%

The Differential Impact of the Force of Law Australian Auditing Standards

Hecimovic¹,

Martinov‐Bennie²

2011

Australian Accounting Review

View full text Add to dashboard Cite

show abstract

“…3 While the public practice has debated over mandatory rotation since the 1970s (Bates, Ingram, and Reckers 1982;Brody and Moscove 1998;Hoyle 1978;Petty and Cuganesan 1996;Stevens 1990;Vanasco 1996;Winters 1976;), 4 the academic lagged in this issue until recent years. Similar to the nonaudit service studies, however, most of the current research generates mixed results to support the adoption of mandatory rotation (Arrunada and Paz-Ares 1997;Dopuch, King, and Schwartz 2001;Elitzur and Falk 1996;Geiger and Raghunandan 2002;Johnson, Khurana, and Reynolds 2002;Myers, Myers, and Omer 2003;Summer 1998). In light of these and other anecdotal evidence, the efficacy of these two proposed mechanisms is still in debate.…”

Section: Raghunandan 2003)mentioning

confidence: 64%

Legal Regimes, Damage Apportionment Rules, and Auditor Independence - Theory and Experimental Evidence

2004

SSRN Journal

View full text Add to dashboard Cite

“…In the case when firms engage in opinion shopping, the effect might reverse depending on the firms' prospects. Elitzur and Falk (1996) examine changes in the planned audit quality if the required rotation is implemented, taking the auditor's independence as given. In contrast, this paper endogenizes auditor independence and examines the changes in the auditor's optimal strategies depending on the type of regulatory regime.…”

Section: Related Literaturementioning

confidence: 99%

Disciplining Role of Auditor Tenure and Mandatory Auditor Rotation

Dordzhieva

2018

SSRN Journal

View full text Add to dashboard Cite

AcknowledgementsI am grateful to my dissertation committee Frank Gigler (advisor), Chandra Kanodia (chair), Gaoqing Zhang, Ivy Zhang, and Jan Werner for their invaluable guidance and support.ii DedicationThis dissertation is dedicated to the memory of my beloved brother, Ochir Dordzhiev.iii AbstractThis study addresses the international debate over whether the rotation of audit firms should be mandatory. Mandatory rotation rules have been adopted by the European Union, but have not been established in the United States. Proponents of the policy believe that a long tenure auditor-client relationship leads to the auditor building an excessive economic bond with the client which erodes auditor independence. Motivated by this claim, I build a theoretical model that compares auditor incentives to issue independent reports under the regimes with and without mandatory rotation. The model demonstrates conditions under which mandatory rotation could impair auditor independence, contrary to the popular view.

show abstract

Planned audit quality

Cited by 43 publications

References 7 publications

The Differential Impact of the Force of Law Australian Auditing Standards

The Differential Impact of the Force of Law Australian Auditing Standards

Legal Regimes, Damage Apportionment Rules, and Auditor Independence - Theory and Experimental Evidence

Disciplining Role of Auditor Tenure and Mandatory Auditor Rotation

Contact Info

Product

Resources

About