The auditor reputation cycle: A synthesis of the literature

Abstract

The auditor reputation hypothesis states that auditors conduct high‐quality audits to build a positive reputation in the marketplace so that they can retain clients and earn fee premiums. We consolidate the dispersed literature on this hypothesis and introduce a framework that presents auditor reputation as a cycle. The overall conclusions support the predictions of our framework regarding reputation as an incentive for audit quality. However, challenges remain in isolating and quantifying the impact. We observe moderating factors on both the supply and demand sides. We also find that existing research has emphasized certain aspects of our framework while addressing others more sparsely. Relatively little is known about how audit firms earn their reputation or how they rebuild it after an audit failure. Mixed evidence in some areas, along with research gaps in the framework, provides opportunities for future research on auditor reputation. Our framework can guide these endeavors.

Influential Factors Affecting Earnings Management in Public Listed Companies: A Conceptual Model

“…In the auditing literature, the concept of auditor reputation has gained widespread acceptance. The auditor reputation hypothesis holds that auditors do high-quality audits to develop a positive reputation in the marketplace so that they may retain clients and receive fee premiums, according to Bergner et al (2020). Following an audit failure and consequent loss of reputation, Big N firms lose major audit clients and revenues (Skinner and Srinivasan, 2012).…”

PCAOB international inspections: Updates and extensions

“…Bergner et al (2020) introduce an auditor reputation cycle framework and provide an extensive review of auditor reputation literature.3 In our study, networks include the Big-4 networks of Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, KPMG International Cooperative and PricewaterhouseCoopers International Limited, as well…”

دراسة واختبار العلاقة بین سمعة مکتب مراقب الحسابات ودقة رأیه بشأن إستمراریة الشرکات غیر المالیة المقیدة بالبورصة المصریة

“…‫الحسابات‬ ‫اق‬ ‫م‬ ‫مكت‬ ‫سمعة‬ ‫وبشأن‬ ‫اسات‬ ‫در‬ ‫خلل‬ ‫صات‬ ‫و‬ (DeAngelo,1981;Dopuch & Simunic. 1982;Gregory & Jeanes ,2000;Craswell et al,1995;Fuerman and Kraten,2008;Kanagaretnam et al,2010;El-Dyasty ,2017;Bergner et al,2020;Rama, et al, 2020;McKenna et al,2020;Blum et al,2021 ‫وخلص‬ (e.g., DeAngelo, 1981;Mutchler et al, 1997;DeFond & Lennox, 2011;Kaplan & Williams, 2012;Myers et al, 2013 ;Berglund et al,2018…”

“…‫أة‬ ‫أ‬ ‫لمااوم‬ ‫أاصة‬ ‫أ‬ ‫إع‬ ‫وو‬ ‫أرير‬ ‫أ‬ ‫الل‬ ‫أة‬ ‫أ‬ ‫اجع‬ ‫المر‬ ‫أآت‬ ‫أ‬ ‫بماش‬ ‫أة‬ ‫أ‬ ‫ن‬ ‫ماار‬ ‫أة‬ ‫أ‬ ‫اجع‬ ‫المر‬ ‫أات‬ ‫أ‬ ‫ملا‬ ‫ألداء‬ ‫أربين‬ ‫أ‬ ‫مر‬ ‫ين‬ ‫أر‬ ‫أ‬ ‫وم‬ ‫أة‬ ‫أ‬ ‫ا‬ ‫صا‬ ‫و‬ ‫ابدار‬ ‫عرر‬ . (Sori et al,2006;Abid et al, 2018) ‫كما‬ ‫النتائج‬ ‫تباتنت‬ (Ayudia,2014;Hapsoro & Suryanto,2017 ;Kausar et al2017;Rahma & Sukirman ,2018;HS & Azzahra ,2020 Chaney & Philipich, 2002;Krishnamurthy et al, 2006Skinner & Srinivasan, 2012Swanquist & Whited, 2015;Qi et al,2017 (DeAngelo, .1981;Defond et al, 2000;Knechel et al, 2007;DeFond & Zhang, 2014 (Bergner et al, 2020;McKenna et al, 2020;Blum et al,2021) . (DeAngelo,1981;Dopuch & Simunic.…”

“…(DeAngelo,1981;Dopuch & Simunic. 1982;Gregory & Jeanes, 2000;Craswell et al, 1995;Fuerman and Kraten, 2008;Kanagaretnam et al, 2010;El-Dyasty, 2017;Bergner et al,2020;Rama, et al, 2020;McKenna et al, 2020;Blum et al,2021 (Geiger et al, 1998;Hardies et al, 2016Hardies et al, ,2018…”