The effect of directors’ and officers’ insurance on audit fees: the case of an emerging economy
2017 ◽
Vol 25
(2)
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pp. 174-190
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Keyword(s):
Purpose The purpose of this paper is to examine the role of D&O insurance in audit pricing in Taiwan, an emerging market in which auditors face negligible litigation risk and intense competition. Design/methodology/approach It examines the association between audit fees and D&O insurance coverage. Findings Results indicate that audit fees are higher for clients with higher D&O coverage after controlling for other determinants. Further analysis shows that auditors charge additional audit fees for clients whose insurer is foreign owned. Originality/value Overall, the study provides evidence that the induction of financial misstatement risks by D&O insurance is one of the contributing audit risk factors in an emerging economy context.
2014 ◽
Vol 4
(2)
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pp. 240-256
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Keyword(s):
2017 ◽
Vol 25
(1)
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pp. 34-57
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Keyword(s):
2021 ◽
Vol ahead-of-print
(ahead-of-print)
◽
2021 ◽
Vol 13
(2)
◽
pp. 233-248
2020 ◽
Vol 27
(2)
◽
pp. 119-134
◽
2012 ◽
Vol 32
(2)
◽
pp. 67-96
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Keyword(s):
2014 ◽
Vol 4
(2)
◽
pp. 197-219
◽
Keyword(s):
2008 ◽
Vol 27
(1)
◽
pp. 105-126
◽
Keyword(s):