Does Availability of Audit Partners Affect Audit Quality? Evidence From China

2019 ◽  
pp. 0148558X1989386
Author(s):  
Agnes W. Y. Lo ◽  
Kenny Z. Lin ◽  
Raymond M. K. Wong
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Certified Public Accountant ◽  
Policy Debate ◽  
Cpa Firms ◽  
Lower Likelihood ◽  
Recent Policy ◽  
Public Accountant

In this study, we examine whether Chinese Certified Public Accountant (CPA) firms with more partners available to perform audit engagements deliver higher quality services. Based on a sample of 2,990 company-year observations over the period of 2002 to 2015, we find that CPA firms with smaller staff–partner ratios are associated with a lower likelihood of restatements of their clients’ financial statements. Interestingly, we find that this association is less evident when engagement partners have excessive workloads, suggesting the need to balance workloads across partners within a firm. Overall, our results highlight the importance of considering partner availability and its impacts on audit quality, which echo regulators’ growing concern about the inadequate mix of audit experience, expertise, and supervision within CPA firms. Our study is timely and the results are informative to the recent policy debate. From a public policy perspective, our results suggest that CPA firms should be required to disclose information about the deployment of audit partners to help financial statement users make inferences about the quality of their work.

scholarly journals Pengaruh Ukuran Perusahaan, Kualitas Audit Dan Profitabilitas Terhadap Kecepatan Waktu Dalam Penyampaian Laporan Keuangan

2018 ◽  
Vol 14 (1) ◽  
pp. 26-33
Author(s):  
Fitri Dwi Jayanti
Keyword(s):  
Logistic Regression ◽  
Audit Quality ◽  
Sampling Technique ◽  
Financial Statements ◽  
Company Size ◽  
Manufacturing Companies ◽  
Variable Size ◽  
Big Four ◽  
Public Accountant

This research aimed to examine the influence of the which consists company size, audit quality and profitability on the speed submission of financial statements in the manufacturing companies listed on the Indonesia Stock Excange (IDX) in 2013 to 2015. Purposive sampling technique is used to obtain the sample size by 66 manufacturing or 198 data in three years. To analyze hyphotesis this research used logistic regression with SPSS version 21.The result of this study showed that audit quality variabels measured by Public Accountant Office big four and non big four received or influenced the speed submission of financial statements while the variable size of the company and profitability hypothesis rejected or variable does not affect the speed submission of financial statements. Keywords: Company Size, Quality of KAP, Profitability, the speed submission of financial statements

scholarly journals ANALISIS PERENCANAAN AUDIT LAPORAN KEUANGAN PADA KANTOR AKUNTAN PUBLIK (KAP) KURNIAWAN, KUSMADI, DAN MATHEUS

2020 ◽  
Vol 8 (3) ◽  
pp. 237-244
Author(s):  
Hafifah Nasution ◽  
Lysa Nur Awalianti
Keyword(s):  
Audit Quality ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Qualitative Approach ◽  
Financial Statement ◽  
Primary Data ◽  
Audit Planning ◽  
Research Show ◽  
Public Accountant

This research was conducted in KAP Kurniawan, Kusmadi and Matheus, which aims to analyse the suitability of audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus with the audit planning of financial statement based on the Professional Standard of Public Accountant (SPAP). Research method that used is descriptive analysis with a qualitative approach and the type of data used is primary data and secondary data. Primary data is collected through interviews, while secondary data by collecting audit planning of financial statements documents in KAP Kurniawan, Kusmadi and Matheus. The results of this research show that the audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus in accordance with the audit planning of financial statement based on SPAP issued by Institute of Public Accountants of Indonesia (IAPI). The advice given to KAP Kurniawan, Kusmadi and Matheus is always implement audit plan in accordance with SPAP because a good audit planning will improve audit quality.

scholarly journals PENGARUH FAKTOR INTERNAL DAN FAKTOR EKSTERNAL TERHADAP INDEPENDENSI AUDITOR (Studi pada Kantor Akuntan Publik di Surabaya)

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Drs. Ec. Hanny Wurangian, M.Si., Ak. ◽  
Dr. Muslich Anshori, M.Sc., Ak.
Keyword(s):  
United States ◽  
Data Collection ◽  
Financial Statement ◽  
Certified Public Accountant ◽  
Financial Wealth ◽  
Financial Statement Audit ◽  
Size Measure ◽  
Research Show ◽  
Public Accountant

Public accountant role and it position is creticized by society, especially for some cases involved large company and big certified public accountant, such happened in United States few years ago. In Indonesia, there are some cases which still cause pro and contra in public. In those cases, public accountant professionalism is questioned. As we know, the most important aspect, which public accountant must maintain is trust from society as their user.In this research, we analyzed auditor independency aspect and some factors, such as: quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation at certified public accountant in Surabaya. Population in this research is auditors and partners who signing audited financial statement (audit report) that work at certified public accountant office in Surabaya. In Surabaya, there are 54 CPA Offices or 77 auditors and partners. All of those 77 auditors and partners acted as respondent and analysis units in this research. Thus, the data collection was done by census.Multiple Regression Model was used to test hypthesis which said that quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation, both collectively and partially, affected to auditor independency at CPA Office in Surabaya.This research show that quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation, collectively, affect to auditor independency at CPA Office in Surabaya. And only 3 or 7 tested variables, which is quality of auditor, auditor-clients relationship, and audit duration, partially, affect to auditor independency, which the most affected variable is auditor-clients relationship.

scholarly journals PENGARUH FAKTOR INTERNAL DAN FAKTOR EKSTERNAL TERHADAP INDEPENDENSI AUDITOR (Studi pada Kantor Akuntan Publik di Surabaya)

2017 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Hanny Wurangian ◽  
Muslich Anshori
Keyword(s):  
United States ◽  
Data Collection ◽  
Financial Statement ◽  
Certified Public Accountant ◽  
Financial Wealth ◽  
Financial Statement Audit ◽  
Size Measure ◽  
Research Show ◽  
Public Accountant

Public accountant role and it position is creticized by society, especially for some cases involved large company and big certified public accountant, such happened in United States few years ago. In Indonesia, there are some cases which still cause pro and contra in public. In those cases, public accountant professionalism is questioned. As we know, the most important aspect, which public accountant must maintain is trust from society as their user.In this research, we analyzed auditor independency aspect and some factors, such as: quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation at certified public accountant in Surabaya. Population in this research is auditors and partners who signing audited financial statement (audit report) that work at certified public accountant office in Surabaya. In Surabaya, there are 54 CPA Offices or 77 auditors and partners. All of those 77 auditors and partners acted as respondent and analysis units in this research. Thus, the data collection was done by census.Multiple Regression Model was used to test hypthesis which said that quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation, both collectively and partially, affected to auditor independency at CPA Office in Surabaya.This research show that quality of auditor, auditor financial wealth, auditor-clients relationship, client size measure, audit duration, audit relation duration, and adherence to existing rule and regulation, collectively, affect to auditor independency at CPA Office in Surabaya. And only 3 or 7 tested variables, which is quality of auditor, auditor-clients relationship, and audit duration, partially, affect to auditor independency, which the most affected variable is auditor-clients relationship.

Audit Quality of Chinese ADR Engagements

2016 ◽  
Vol 31 (2) ◽  
pp. 25-43 ◽  
Author(s):  
Aloke (Al) Ghosh ◽  
Elisabeth Peltier ◽  
Cunyu Xing
Keyword(s):  
Audit Quality ◽  
Emerging Market ◽  
Financial Statements ◽  
Foreign Firms ◽  
American Depositary Receipts ◽  
Reverse Mergers ◽  
Chinese Companies ◽  
Big 4 ◽  
Depositary Receipts

SYNOPSIS The controversy over Chinese reverse mergers has led to concerns about the audit quality of all U.S.-listed Chinese companies. Because a sizeable number of foreign firms cross-list their shares as American Depositary Receipts (ADRs) issued by U.S. depositary banks (as opposed to direct listings), we study how auditors have managed their audits of Chinese ADRs. Our motivation for examining Chinese ADRs is based on the findings that cross-listing via the ADR process is beneficial for U.S. shareholders. We find that relative to ADRs from countries other than China, and relative to directly listed Chinese companies, Chinese ADRs are more likely to be associated with a Big 4 auditor and are less likely to restate prior-period financial statements. We also find that Chinese ADRs pay significantly higher fees than other emerging market ADRs and Chinese direct-listings. Collectively, these results suggest high audit quality for Chinese ADRs, which is in sharp contrast to the Chinese direct-listing results. Using Tobin's Q as a measure of market value, we find that the stock market rewards Chinese ADRs, indicating that investors incorporate the benefits of higher audit quality when evaluating Chinese ADRs.

scholarly journals Assessment of the Jordanian Certified Public Accountant JCPA Examination in Comparison to the International Accounting Education Standards and the Best International Practices

2017 ◽  
Vol 10 (8) ◽  
pp. 232
Author(s):  
Mahmoud Nassar ◽  
Husam Aldeen AL-Khadash
Keyword(s):  
Accounting Education ◽  
International Accounting ◽  
Certified Public Accountant ◽  
Education Standards ◽  
Accounting Practice ◽  
Computer Based ◽  
Specific Material ◽  
Further Development ◽  
Public Accountant

This study aims to highlight the experiences of Jordanian Certified Public Accountant (JCPA) exam that started with the establishment of the Legal Accounting Profession organisation law in June 2006. This study is considered the first study in the Hashemite Kingdom of Jordan that looks at the evaluation of the Jordanian Chartered Public Accountant exam, in comparison to the requirements of international accounting education standards. Furthermore, this study focuses on the sixth standard IES6 that relates to the assessment of professional accountants and that is based on the best practices in professional accounting examinations in the world. This current study has adopted the method of distribution of questionnaires to gather information from those who participated in taking the exam, with the group of those who were successful, and others that were not so lucky. The accounting practice analysis was based on the standards, the best accounting practices, and the results of the interviews, which when were completed produced a number of recommendations. The recommendations or results found, push for the further development of the JCPA exam and improves the quality of the exam, to advance to the universal level of professional examinations. Of the most important recommendations is to work on increasing the number of times the exam is held annually, which can be done easily if the exam becomes computer based. It’s also important to develop specific firm dates for the JCPA exam or to announce the dates at the beginning of each year, and not to announce the exam time two months prior to the exam as it is currently. Finally, the announcement and clarification of specific percentages given to specific material included in the exam such as dedicating 25% of the examination to International Auditing Standards and so on.

scholarly journals An Examination of the Effects of Change in Committee Chair on Audit Quality

2017 ◽  
Vol 6 (4) ◽  
pp. 52
Author(s):  
Izhar Haq ◽  
Teresa Lang ◽  
Hongkang Xu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Committee Chair ◽  
The Absolute ◽  
Predicted Values ◽  
The Relationship ◽  
A Company

This study uses GMI Ratings directorship data from 2008 to 2013 along with the associated financial data to examine the relationship between audit committee chair change with the absolute discretionary accruals in the financial statements of the reporting companies.  Our results suggest that audit committee chair change is positively associated with the absolute discretionary accruals.  Specifically, absolute discretionary accruals are significantly higher when there is a change in the audit committee chair.  These results are consistent with prior research that deviations from the predicted values of accruals is an indicator of “poor” audit quality.  An additional finding of this paper is that a person younger than 60 is more likely to be a new audit committee chair when there is a change and therefore will have less experience and contacts than the outgoing chair. An important implication of these results is that audit committee chair change can have a significant impact on the quality of the financial statements of a company as well as on the audit quality.

scholarly journals Perceptions of Educators, Accounting Students and Accountants Public Accountant against Ethics of Financial Statement Preparation (Studies at University and KAP in Semarang)

2021 ◽  
Vol 4 (1) ◽  
pp. 89-101
Author(s):  
Imam Prayogo ◽  
Teuku Afrizal
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Accounting Students ◽  
Survey Method ◽  
Analysis Tool ◽  
Validity And Reliability ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Public Accountant

This study aims to examine differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements. Ethical indicators for the preparation of financial statements are represented in earnings management, misstatements, disclosures, cost-benefits, and responsibilities. This research was conducted at universities and public accounting firms in Semarang. This research was conducted with a survey method of 70 respondents from teaching accountants, 75 accounting students, and 40 accountants respondents at universities and public accounting firms in Semarang. As an analysis tool, ANOVA is used for hypotheses H1, H2, H3, and H4. Before testing the hypothesis, first the validity and reliability tests are carried out for all the questionnaires that have been collected. Validity and reliability tests show that all data are valid and reliable. Then the questionnaire was tested by ANOVA and strengthened by the Independent Sample T Test. Anova results show that there are differences in perceptions between teaching accountants, accounting students and accountants. However, there was no difference in perceptions between teaching accountants and accountants. Therefore it can be concluded that there are differences in perceptions between teaching accountants, accounting students, and accountants on the ethics of preparing financial statements.

scholarly journals PENGARUH KOMPETENSI, INDEPENDENSI, TEKANAN WAKTU, DAN ETIKA AUDITOR TERHADAP KUALITAS AUDIT

2014 ◽  
Vol 1 (2) ◽  
pp. 49
Author(s):  
Winda Kurnia ◽  
Khomsiyah Khomsiyah ◽  
Sofie Sofie
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Time Pressure ◽  
Financial Statements ◽  
The Public ◽  
Public Accountant

The purpose of this study is to analyze the effect of competence, independence, time pressure, and ethics of auditors on the quality of audit. This research is expected to improve the quality of audit conducted by an auditor who has the competence and independence. The population used in this research are auditors who work in the public accountant office in jakarta of which is there are as many as 171 of respondents. This study used multiple regression analysis. The results of this study are (1) The competence has significant effect on the quality of audit, (2) The independence has significant effect on the quality of audit, (3) The time pressure has significant effect on the quality of audit, and (4) The ethics has significant effect on the quality of audit. The implication of this research for institution that is public accountant office as an evaluation on upon the performance of auditors to increase the competence, independence, time pressure, and ethics of auditors to produce a good quality of audit in terms of the disclosure of the financial statements and can help investors and other parties concerned to avoid the possibility of fraud by those who use the audit results.<br /><br />

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