Essays on Auditor Quality and Non-GAAP Earnings

ABSTRACT This study examines how differential auditor quality can affect clients' tax noncompliance at different book-tax conformity levels. Overall, we find that high-quality auditors are associated with client firms' better tax compliance. Specifically, high-quality auditors are effective in constraining book-tax-conforming noncompliance because of the direct linkage between financial and tax reporting for such noncompliance at both the higher and the lower conformity periods. In contrast, high-quality auditors' constraining effect on book-tax-difference noncompliance is significant only in the lower conformity period when there are more opportunities for reporting irregularities. Furthermore, firms that switch from a low- to a high-quality auditor have better tax compliance after the switch. This study contributes to the literature by providing evidence that high-quality auditors not only can constrain clients' earnings management, but can also constrain tax noncompliance. JEL Classifications: M41; M42.

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Pengaruh Human Capital Dan Gender Terhadap Kualitas Auditor Pada Kantor Akuntan Publik Di Medan

JAKPI - Jurnal Akuntansi, Keuangan & Perpajakan Indonesia ◽

10.24114/jakpi.v9i2.28536 ◽

2021 ◽

Vol 9 (2) ◽

Author(s):

Bintang Wiratama Putra ◽

Azizul Kholis ◽

Esa Setiana

Keyword(s):

Human Capital ◽

Partial Least Square ◽

Least Square ◽

Auditor Quality

Penelitian ini mengkaji tentang kualitas auditor dalam mengeluarkan opini terhadap laporan keuangan. Hasil opini yang dikeluarkan auditor dapat mempengaruhi nilai suatu perusahaan. Penelitian ini bertujuan untuk menguji hubungan Human Capital dan Gender terhadap kualitas auditor pada Kantor Akuntan Publik (KAP) di Medan. Populasi dalam penelitian ini adalah auditor yang bekerja pada Kantor Akuntan Publik (KAP) di Medan. Dengan teknik pengumpulan data melalui keusioner diperoleh 36 sampel. Data yang diperoleh merupakan data primer pada kantor Akuntan Publik (KAP) di Medan. Variabel penelitian ini terdiri dari Kualitas Auditor sebagai variabel terikat dan Human Capital dan Gender sebagai variabel bebas. Teknik analisis data yang digunakan dalam penelitian ini adalah SMART Partial Least Square (PLS). Hasil penelitian ini menunjukan bahwa variabel Human Capital secara partial tidak berpengaruh dan signifikan terhadap Kualitas Auditor. Variabel Gender secara partial berpengaruh dan signifikan terhadap Kualitas Auditor. Sedangkan secara simultan, Variabel Human Capital dan Gender terhadap Kualitas Auditor. Kesimpulan penelitian ini adalah secara partial variabel Gender berpengaruh terhadap Kualitas Auditor sedangkan variabel Human Capital tidak berpengaruh dan signifikan. Variabel Human Capital dan Gender tidak berpengaruh secara simultan terhadap kualitas auditor pada Kantor Akuntan Publik (KAP) di Medan.Kata Kunci: Human Capital, Gender, Auditor Quality

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KEMAMPUAN AUDIT TENURE MEMODERASI PENGARUH PENGALAMAN DAN SKEPTISISME AUDITOR DENGAN KUALITAS AUDIT

Jurnal Ilmiah Akuntansi ◽

10.23887/jia.v2i1.9670 ◽

2017 ◽

Vol 2 (1) ◽

Author(s):

I Gusti Ayu Nyoman Budiasih ◽

Ketut Budiartha

Keyword(s):

Data Analysis ◽

Audit Quality ◽

Total Sample ◽

Financial Reports ◽

Auditor Quality ◽

Sample Data ◽

Client Pressure ◽

Relationship Of ◽

The Relationship

ABSTRAKPentingnya laporan keuangan bagi banyak pihak, menyebabkan laporan tersebut harus disajikan secara relevan dan reliabel. Kualitas audit yang baik dapat menyebabkan laporan keuangan semakin dipercaya keasliannya. Kualitas audit tergantung pada independensi dan kompetensi auditor. Independensi dan kompetensi seorang auditor tergantung pada pengalaman maupun sikap skeptis yang dimiliki auditor tersebut. Pengalaman auditor akan meningkat dikarenakan telah terbiasa dengan pekerjaannya sehingga auditor akan bekerja secara efisien dan lebih tahan terhadap tekanan klien. Sampel yang dipilih menggunakan teknik sampel jenuh dengan jumlah sampel sebanyak 85 auditor. Pengumpulan data dilakukan dengan menyebarkan kuesioner kepada auditor yang menjadi sampel penelitian. Teknik analisis datanya menggunakan analisis regresi tanpa dan dengan variabel moderasi. Berdasarkan hasil analisis data dan pembahasan yang telah dilakukan, maka dapat disimpulkan bahwa kualitas audit di KAP Provinsi Bali memiliki hubungan secara positif dengan pengalaman dan skeptisisme auditor, audit tenure tidak mampu memoderasi hubungan pengalaman auditor dengan kualitas audit auditor di KAP Provinsi Bali, dan audit tenure mampu memoderasi hubungan skeptisisme auditor dengan kualitas audit auditor di KAP Provinsi Bali.Kata Kunci: audit tenure, pengalaman , skeptisisme auditor, kualitas audit ABSTRACTThe importance of financial statements for many, causing the report to be presented in a relevant and reliable manner. A good audit quality can lead to more authentic financial reports. The quality of the audit depends on the independence and competence of the auditor. The independence and competence of an auditor depends on the experience and skepticism of the auditor. The experience of the auditor will increase due to the familiarity with the work so that the auditor will work efficiently and more resistant to client pressure. The samples were selected using a sample saturated technique with a total sample of 85 auditors. Data collection was done by distributing questionnaires to the auditor who became the research sample. Data analysis techniques use regression analysis without and with moderation variables. Based on the results of data analysis and discussion that have been done, it can be concluded that the audit quality in KAP Bali Province has a positive relationship with the experience and skepticism of auditors, audit tenure unable to moderate the relationship of auditor experience with audit auditor quality in KAP Bali Province and audit tenure able to moderate the relationship of auditor skepticism with audit auditor quality in KAP Bali Province.Keywords: audit tenure, experience, auditor skepticism, audit quality

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PENGARUH PROFITABILITAS, SOLVABILITAS, DAN OPINI AUDIT TERHADAP KETEPATAN WAKTU PENYAMPAIAN LAPORAN KEUANGAN (TIMELINESS) DENGAN KUALITAS AUDITOR SEBAGAI VARIABEL MODERATING

JURNAL ILMU EKONOMI & SOSIAL ◽

10.35724/jies.v8i2.714 ◽

2017 ◽

Vol 8 (2) ◽

pp. 122-139

Author(s):

Thia Margaretha Tarigan

Keyword(s):

Sampling Method ◽

Stock Exchange ◽

Sample Selection ◽

Secondary Data ◽

Manufacturing Companies ◽

Statistical Tool ◽

Audit Opinion ◽

Auditor Quality ◽

Logistic Regressions ◽

Selection Of

This research aims to verify and provide empirical evidences about: the effect of Profitability, Solvability, and Audit Opinion to Timeliness with Auditor Quality as moderating variabel of manufacturing companies in Indonesia Stock Exchange. The population of this research are 138 manufacturing companies in Indonesia Stock Exchange (BEI) since 2010 – 2014. Sample selection of this research use purposive sampling method. The sample of this research are 78 manufacturing companies. Type of data used are secondary data, that collected by documentation. Statistical tool used is logistic regressions analysis. The result of this research concluded that only profitability have positive significant to timeliness while solvability and audit opinion have not significant to timeliness. Auditor quality as moderating variabel has not strengthened the correlation between profitability, and audit opinion to timeliness but not weaknessed the correlation between solvability to timeliness.

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Dampak dari auditor quality, financial stability, dan financial target terhadap fraudulent financial reporting

Studi Ilmu Manajemen dan Organisasi ◽

10.35912/simo.v1i1.21 ◽

2020 ◽

Vol 1 (1) ◽

pp. 1-11

Author(s):

Deasy Emalia ◽

◽

Pratana Puspa Midiastuty ◽

Eddy Suranta ◽

Rini Indriani ◽

...

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Fraudulent Financial Reporting ◽

Auditor Quality

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Dressing for the Occasion? Audit Quality in the Presence of Competition for New Clients

The Accounting Review ◽

10.2308/tar-2016-0665 ◽

2021 ◽

Author(s):

Henrik Moser

Keyword(s):

Audit Quality ◽

Market Competition ◽

New Approach ◽

Auditor Choice ◽

Audit Market ◽

Auditor Quality ◽

The Impact

This paper investigates the impact of increased audit market competition on audit quality and auditor choice. I develop a model comprising two auditors who compete for a new client by choosing the audit quality for their respective existing clients and using the audited report as a signal. I identify factors that influence auditor quality decisions as well as the behavior of clients, who potentially misstate their reports. Auditors are tempted to alter audit quality because they are eager to appear desirable from a new client's perspective. Interestingly, while recipients of the audited report adjust their conjectures about audit quality, there are conditions under which auditors lower their audit quality to increase the likelihood of being hired. The analysis extends the existing literature by describing a new approach to modeling the auditors' motivation to signal reputation for certain behavior.

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Goodwill Impairment and Audit Effort

Accounting Horizons ◽

10.2308/horizons-19-055 ◽

2021 ◽

Author(s):

Al (Aloke) Ghosh ◽

Cunyu Xing

Keyword(s):

Audit Fees ◽

Evidence Based ◽

Cross Sectional ◽

Goodwill Impairment ◽

Effort Level ◽

Big 4 ◽

Auditor Quality ◽

Survey Responses

Using abnormal audit fees to capture any added charges associated with incremental audit effort beyond the effort level needed under normal or expected circumstances, we find that the incremental audit effort is positively associated with goodwill to total assets. Additionally, when goodwill is impaired, auditors exert incrementally more effort for testing the magnitude of a goodwill impairment loss than when goodwill is not impaired. Further, we document predictable temporal and cross-sectional variations in audit effort with goodwill. As the standards on accounting for goodwill became more (less) stringent, there is a corresponding increase (decrease) in audit effort. The effort also varies cross sectionally with auditor quality (Big 4 versus non-Big 4). Using audit delay as an alternative proxy for audit effort, we find that only a goodwill impairment loss is associated with longer audit delays. Finally, we provide corroborating evidence based on survey responses obtained from expert auditors. Our results contradict the perception that auditors do not exert incrementally more effort when testing goodwill for impairment.

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Why do Restatements Decrease in a Clawback Environment? An Investigation into Financial Reporting Executives' Decision-Making during the Restatement Process

The Accounting Review ◽

10.2308/accr-51049 ◽

2015 ◽

Vol 90 (6) ◽

pp. 2515-2536 ◽

Cited By ~ 19

Author(s):

Jonathan S. Pyzoha

Keyword(s):

Decision Making ◽

Executive Compensation ◽

Financial Reporting ◽

Financial Statements ◽

Data Availability ◽

Archival Studies ◽

Key Factors ◽

Ex Post ◽

Auditor Quality

ABSTRACT Prior archival studies find that firms that voluntarily adopted clawback policies have experienced a reduction in restatements. I experimentally examine this outcome by investigating the influence of two key factors (i.e., executive compensation structure and auditor quality) on financial reporting executives' (hereafter, “executives”) decision-making regarding a proposed restatement that will lead to a clawback of their incentives. I find that executives (i.e., CFOs, controllers, and treasurers) facing a lower quality auditor are less likely to agree with amending prior financial statements when a higher proportion of their pay is incentive-based. However, this tendency is reduced when executives face a higher quality auditor, indicating that higher quality auditors can act as effective monitors. My results identify an ex post unintended consequence of clawback regulation that could at least partially offset the benefits of the ex ante deterrent effects of clawbacks, and that could contribute to findings of less frequent restatements when clawback policies are in place. I discuss potential implications regarding the role of executives during restatement decisions and auditors' risk assessments in a clawback environment. Data Availability: Data are available from the author upon request.

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