The International Audit Firms as New Entrants - An Empirical Analysis of Auditor Selection in Greece, 1993 to 1997

2000 ◽  
Author(s):  
David B. Citron ◽  
Gikas Manalis
Keyword(s):  
Empirical Analysis ◽  
Audit Firms ◽  
New Entrants ◽  
Auditor Selection ◽  
International Audit

INTERNATIONALIZING THE FRENCH AUDITING PROFESSION

2009 ◽  
Vol 36 (1) ◽  
pp. 29-59 ◽  
Author(s):  
Ignace De Beelde ◽  
Nathalie Gonthier-Besacier ◽  
Alain Mikol
Keyword(s):  
19Th Century ◽  
Financial Statements ◽  
Company Law ◽  
Late 19Th Century ◽  
Audit Market ◽  
Audit Firms ◽  
Anglo American ◽  
The 1960S ◽  
Modern Form ◽  
International Audit

The objective of this paper is to trace the development of the French auditing profession, the commissaires aux comptes, focusing on the appearance of the large Anglo-American audit firms on the French market. The French audit market has always shown a number of peculiarities, including the continued importance of a number of local audit firms. The French auditing profession finds its roots in late 19th century company law that introduced an obligation for companies to release audited financial statements. The profession became regulated in its modern form in the 1960s. This paper attempts to explain the growing impact of the international audit firms on the French auditing profession. It also demonstrates how local professionals and the French state reacted to these developments.

INCREASE IN AUDIT RISKS OF NON-DETECTION OF SCAM IN A PANDEMIC

2021 ◽  
pp. 187-197
Author(s):  
M.M. Shygun ◽  
◽  
U.O. Marchuk ◽  
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Organizational Support ◽  
Well Being ◽  
The United States ◽  
Remote Work ◽  
Audit Firms ◽  
The Impact ◽  
Big Four ◽  
International Audit

The impact of Covid-19 on the quality of audits has been studied and the risks of increasing the range for fraud have been identified. The article outlines the range of services provided by audit companies, including: accounting, financial reporting, tax services, payroll services, labor support and insurance, planning and reporting, consulting services. These factors indicate that the number of frauds increased during Covid-19 and may increase, as fraud detection is more difficult in the digital environment. Revenues for 2020 and 2021 are outlined and a rating of the 10 largest international audit companies is built. An analytical assessment of changes in the income of each of the represented international audit companies was performed. It is noted that companies registered in the United States have adapted to the economic landscape changed by Covid-19. It was noted that according to the Audit Analytics report, 800 companies reported changes in their internal control related to changes in pandemic risks. The dynamics of the total income of audit firms of the Big Four from 2009 to 2020 is given. It is stated that while Deloitte received the largest share of its revenue in America, KPMG's Amsterdam-based revenue was the largest in Europe, the Middle East and Africa. It is noted that the two leading international audit companies received a significant portion of their revenues from auditing, assurance, auditing and corporate risks. The income of international audit firms of the Big Four by types of activity in 2020 on the international market of services is allocated. Management fraud statistics are estimated at 12%, auditor and accountant statistics at 14% worldwide, and operating fraud statistics at 15%. In general, the ability of management to compare the financial statements prepared by the accountant with external auditors helps in assessing performance and risk assessment, and the independent auditor's opinion serves as a guide for relevant stakeholders in decision-making, and creates and helps reduce information asymmetry. The dynamics of changes in the number of employees for the period 2020 -2021 in the 10 most successful international audit companies in the world. The impact of remote work through the COVID-19 pandemic and the feedback from audit firms and their employees through organizational support (employer-to-employee) and organizational commitment (employee-to-employer commitment) are identified. The division of organizational support into: a sense of support for the company and a sense of support for colleagues. In general, in the event of a pandemic, the vast majority of meetings take place through digital communication channels, which significantly affects the well-being and mental state of staff.

Neither takers nor makers: The Big-4 auditing firms as regulatory intermediaries

2019 ◽  
Vol 25 (3) ◽  
pp. 349-374 ◽  
Author(s):  
Lior Herman
Keyword(s):  
Financial Reporting ◽  
Market Failure ◽  
Balance Of Power ◽  
Reporting Standards ◽  
Global Networks ◽  
Financial Reporting Standards ◽  
Big 4 ◽  
Audit Firms ◽  
Regulatory Capacity ◽  
International Audit

What are regulatory intermediaries? What roles do regulatory intermediaries play? What is the basis of their regulatory capacity and authority? This article examines these questions by focusing on the Big-4 international audit firms in the context of harmonizing international financial reporting standards. I argue that regulatory intermediaries perform a variety of regulatory market failure correcting functions for both regulatory makers and takers. Intermediation is far from being secondary to the regulatory process, and intermediaries, particularly those of transnational nature, have a pivotal role. Furthermore, regulatory intermediaries, as exemplified in the case of the Big-4, continuously challenge the primacy of the state, and the division of labor and balance of power between regulatory actors. Regulatory entrepreneurship and activism, coupled with unique organizational model based on global networks of partnerships, have led to the ascension of the Big-4 to unprecedented regulatory and market powers.

Does Increased Audit Partner Tenure Reduce Audit Quality?

2008 ◽  
Vol 23 (4) ◽  
pp. 553-572 ◽  
Author(s):  
David L. Manry ◽  
Theodore J. Mock ◽  
Jerry L. Turner
Keyword(s):  
Audit Quality ◽  
Discretionary Accruals ◽  
Financial Statement ◽  
Risk Level ◽  
Negatively Associated ◽  
Audit Firm ◽  
Sarbanes Oxley ◽  
Audit Firms ◽  
Using Data ◽  
International Audit

The Sarbanes-Oxley Act of 2002 requires the lead audit or coordinating partner and the reviewing partner to rotate off the audit every five years so the engagement can be viewed “with fresh and skeptical eyes.” Using data obtained from actual audits by multiple U.S. offices of three large international audit firms, we examine whether there is a relationship between evidence of reduced audit quality, measured by estimated discretionary accruals, and audit partner tenure with a specific client. We find that estimated discretionary accruals are significantly and negatively associated with the lead audit partner's tenure with a specific client. Thus, audit quality appears to increase with increased partner tenure. After controlling for client size and engagement risk, we find audit partner tenure significantly and negatively associated with estimated discretionary accruals only for small clients with partner tenure of greater than seven years, regardless of risk level. We also find that tenure is not significantly associated with estimated discretionary accruals for large clients. This suggests that as partner tenure increases, auditors of small client firms become less willing to accept more aggressive financial statement assertions by managers, and that partner tenure does not affect audit quality for large clients or for shorter-tenure smaller clients. Our results relating to audit partner tenure are consistent with the conclusions about audit firm tenure by Geiger and Raghunandan (2002); Johnson, Khurana, and Reynolds (2002);Myers, Myers, and Omer (2003); and Nagy (2005) and extend their findings by focusing on individual audit partners rather than on audit firms.

scholarly journals DIFFERENCES BETWEEN AUDIT QUALITY PROVIDED BY INTERNATIONAL AND LOCAL AUDIT FIRMS: THE RESEARCH ON AUDIT CLIENTS’ PERCEPTIONS IN THE AUDIT MARKET OF LITHUANIA

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 157-173
Author(s):  
Darius Vaicekauskas
Keyword(s):  
Audit Quality ◽  
Value Added ◽  
Quality Criteria ◽  
Third Parties ◽  
Added Value ◽  
Performance Criteria ◽  
Audit Firms ◽  
Triangular Relationship ◽  
International Audit ◽  
Audit Performance

The article investigates the quality of audit services that international and local (operating nationally) audit firms are offering. There has been a great amount of effort put in recent years to improve audit quality due to the increase of auditing scandals in various corporations across the world. To improve audit quality, it is crucial to assure that all the stakeholders of the auditing triangular relationship would be satisfied with the outcomes (what is provided) and the process (how the service is provided) of audit services. Considerable attention should be paid not only to the external users (third-parties), but also to the audit clients as their perceptions of what is a quality audit are very subjective.In the last couple of decades, there has been a lot of effort put into research whether the best international audit firms do actually provide audits of higher quality than the local audit firms that are based nationally. The main criterion that these firms are compared in a vast body of literature is the accuracy of the information that was provided to the third parties in auditors’ reports, i.e. in many studies the correct auditor’s report is used as a proxy for audit quality.The aim of this study was to investigate whether Lithuanian audit clients perceive audit services to be better in quality when employing local or international audit firms. This paper will theoretically discuss the audit quality differences between international and local audit firms, and it will present the results of the survey of Lithuanian audit clients.The survey used the questionnaire based on 12 audit quality criteria assessible for the client. The criteria represented audit service’s value added and the performance, i.e. how the audit was conducted. Results of the survey imply that both international and local audit firms provide their clients with the same level of added value and audit performance, except the following significant differences. It can be stated that Lithuanian audit clients perceive audit provided by local audit firms to be of a higher quality than those provided by international audit firms in terms of the insights on tax risks (value added criterion), partner’s involvement in their audit, and perceived competence of audit assistants (audit performance criteria).

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