scholarly journals Auditing quality characteristics and accounting conservatism: an empirical study of the listed companies in Egypt

2014 ◽  
Vol 11 (2) ◽  
pp. 352-361 ◽  
Author(s):  
Mohammed Moustafa Soliman
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Stock Exchange ◽  
Quality Characteristics ◽  
Accounting Conservatism ◽  
Company Size ◽  
Audit Firm ◽  
Auditor Tenure ◽  
The Impact ◽  
Auditor Specialization

The growing issues on the quality of audit and accounting conservatisms have long been regarded and seemed as a hot debated since both could impact on the capital market efficiency. This study aims to investigate the impact of the audit quality which is characterized by audit firm size, auditor specialization, and auditor tenure on accounting conservatisms in the financial reports of the more active 50 non-financial companies listed at Egyptian stock exchange across four years of period from 2007 to 2010. After controlling for company size, leverage and profitability, the results show that auditing quality characteristics (audit firm size, auditor specialization, and auditor tenure) have significant positive relation with accounting conservatism. On the other hand, no significant relationship is found between company size and accounting conservatism. Based on these results, the study provided recommendations to the interested parties.

A meta-analysis approach for determinants of effective factors on audit quality

2019 ◽  
Vol 9 (2) ◽  
pp. 287-312 ◽  
Author(s):  
Mahdi Salehi ◽  
Mohamad Reza Fakhri Mahmoudi ◽  
Ali Daemi Gah
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Meta Analysis ◽  
International Studies ◽  
Content Type ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Audit Standard ◽  
Year 2000 ◽  
Auditor Specialization

PurposeThe purpose of this paper is to demonstrate a deeper understanding about the reasons behind difference in previous studies’ results in the field of audit quality determinants.Design/methodology/approachA meta-analysis method is employed in which 52 studies including 40 international studies from authentic scientific articles during the year 2000–2015 and 12 national studies out of authentic national scientific articles from 2001 to 2015 are taken to account as sample studies. Audit firm size, auditor tenure and auditor specialization are set as independent variables and audit quality is the only dependent variable in the current paper.FindingsThe results indicate that audit firm size and auditor specialization are positively associated with audit quality. In other words, contracting with larger audit firm and specialized auditor results in delivering higher quality audit services.Originality/valueThe current study is the first study to be conducted in the field of audit quality determinants. The results may be beneficial both for standard setters as well practitioners in a way that it provides evidence that contributes to basis policy and audit-standard makers about domination and determinants of audit quality.

Clients' Expectations on Audit Judgments: A Note

2004 ◽  
Vol 16 (1) ◽  
pp. 63-74 ◽  
Author(s):  
Venkataraman M. Iyer ◽  
Dasaratha V. Rama
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Early Years ◽  
Relative Power ◽  
Client Perceptions ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Start Up ◽  
Nonaudit Services ◽  
The Impact

Audited financial statements can be viewed as the product of negotiations between a company's management and its auditor. Relative power of these two parties is a major factor that determines the outcome of the negotiation. This study examines the impact of auditor tenure, importance of a client to an audit partner, nonaudit purchases, and prior audit firm experience of client personnel on client perceptions about their ability to persuade the auditor in the context of an accounting disagreement. We obtained responses to a survey from 124 CPAs in industry who are employed as CEOs, CFOs, controllers, or treasurers. Our results indicate that respondents from companies with short auditor tenures were somewhat more likely to indicate that they could persuade the auditor to accept their (client's) position in case of a disagreement. This finding is consistent with the argument that auditors are susceptible to influence in the early years as they are still in the process of recouping start-up costs, but is not consistent with concerns expressed by legislators and others that long auditor tenures will adversely affect audit quality. Respondents who believed their business was more important for the audit partner were also more likely to believe that they could persuade the auditor. However, the purchase of nonaudit services and prior audit experience were not related to client's perceptions about their ability to persuade the auditor.

scholarly journals Faktor – Faktor Yang Mempengaruhi Real Earnings Management Pada Perusahaan Manufaktur di BEI

2020 ◽  
Vol 25 (2) ◽  
pp. 163
Author(s):  
Linda Santioso, Emily Janice, Andreas Bambang Daryatno
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
T Test ◽  
Real Earnings Management ◽  
External Audit ◽  
Audit Firm ◽  
Financial Expertise ◽  
The Impact

This research aims to find out and analyze the impact of audit committee financial expertise, audit quality that is proxied by external audit firm size, and profitability on real earnings management. The method used in this research was purposive sampling with a total sample of 59 manufacturing companies listed in Indonesian Stock Exchange (IDX). The type of data used was secondary data acquired through financial statements extracted from www.idx.co.id. Data analysis methods used in this research were classical assumption analysis, descriptive statistical test, f test, t test, and the test of determination coefficient. T test was used to test this study’s hypothesis. Final result of the study showed that audit committee financial expertise and audit quality proxied by external audit firm size do not have any significant effect on real earnings management, while profitability has been shown to have a positive effect on real earnings management.

scholarly journals Effect of auditor quality on auditor auditee negotiation outcomes

2008 ◽  
Vol 5 (4) ◽  
pp. 373-383
Author(s):  
Manel Hadriche Sahnoun ◽  
Mohamed Ali Zarai
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Significant Relationship ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Auditor Quality ◽  
And Performance ◽  
The Impact ◽  
Negotiation Outcome ◽  
Industry Specialist

The purpose of this paper is to study the impact of some attributes of auditor quality such as: auditor tenure, auditor industry specialist, auditor experience and the audit firm size on auditor auditee negotiation outcomes. For the entire sample of 81 Tunisians firms, our results indicate positive and significant relationship between auditor tenure, auditor experience and the extent to which the auditee agreed with the auditor over the financial reporting issues. On the other hand, the results indicate a positive but non-significant relationship between the auditor industry specialist and the negotiation outcome. For the audit firm size, we find that auditees are more likely to agree with big 4 audits firms. Indeed, we find no significant relationship between importance, size and performance of the auditee and auditor auditee negotiation outcome

scholarly journals Pengaruh Kualitas Audit, Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Perbankan Yang Tercatat Di Bursa Efek Indonesia Tahun 2016-2018

2020 ◽  
Vol 1 (01) ◽  
pp. 56
Author(s):  
Rodhiya Maulidah ◽  
Rahmat Agus Santoso
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Multiple Linear Regression ◽  
Firm Size ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Earnings Information

The existence of earnings information that is needed in the financial statements can be targeted by parties who are not responsible for carrying out earnings management practices. There are several factors that can present earnings management practices, namely audit quality, company size and leverage. This study discusses the evaluation of quality, company size and leverage on earnings management in banking companies listed on the Indonesia Stock Exchange in 2016-2018. By using 117 samples of annual financial statements or financial statements of companies listed on the Indonesia Stock Exchange. Tests carried out using multiple linear regression. Regression results indicate the results of quality audits and firm size significantly influence earnings management. Meanwhile, leverage is not significant to earnings management. It is expected that the results of this study can add insight for users of financial statements to pay attention to audit quality and company size to avoid earnings management practices.

scholarly journals The Effect of Audit Tenure, Audit Rotation, Audit Fee, Accounting Firm Size, and Auditor Specialization to Audit Quality

2019 ◽  
Vol 4 (3) ◽  
pp. 186-196 ◽  
Author(s):  
Shinta Permata Sari ◽  
Ayu Aris Diyanti ◽  
Rita Wijayanti
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Accounting Firm ◽  
Audit Fee ◽  
Auditor Specialization

The company management has a responsibility to run the company activities by reporting the resultsthrough financial statements. The role of an auditor is needed to mediate the management's interest and share holder’s concern.An auditor is an independent part of giving an opinion about the information contained in the financial statementsthroughits audit quality. Audit quality can be reduced if the auditor is not independent anymore. This study aims to analyze the effect of audit tenure, audit rotation,audit fee, accounting firm size, and auditor specialization to audit quality. The population of the study is manufacturing companies listed on the Indonesia Stock Exchange in2015-2017. The sample was taken by a purposive sampling method and obtained 50 companies as samples. Data were tested using logistic regression. The results of this study indicate that audit rotation,fee audit, and accounting firm size do not affect audit quality,meanwhile, the audit tenure and auditor specialization affect audit quality.

scholarly journals The effect of audit firm tenure in artificial rotation on audit quality

2015 ◽  
Vol 17 (3) ◽  
pp. 439
Author(s):  
Junaidi Junaidi ◽  
Harun Pamungkas Apriyanto ◽  
Nurdiono Nurdiono ◽  
Eko Suwardi
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Audit Firms ◽  
Client Relationship ◽  
Going Concern Opinion ◽  
The Relationship

This study aimed to examine the effect of auditor tenure in artificial rotation on audit quality. Tenure shows the relationship between the audit firms and a client that is measured in years. Artificial rotation of auditor (audit firm) indicates a condition that, conceptually, there has been a change of auditors leading to the auditor relationship with the client to be disconnected, whereas substantive auditor-client relationship is ongoing. Formally, the auditor does not violate the rules and is still able to audit for the same client. Yet, in the long-term, it could affect the audit quality. The longer auditor tenure, the closer auditor-client relationship is. Thus, the auditor accommodates the interests of the client at the client's financial statements, including the practice of discretionary accruals as a proxy for audit quality. The samples were selected by purposive sampling method of the companies listed in Indonesia Stock Exchange from the year 2002-2010, with multiple linear regression approach. It shows that tenure, and total assets do not affect the quality of the audit while the size of the audit firm, and debt statistically have significant effect on audit quality. Future studies may extend the period of observation, and using other audit quality measures, such as fraud, and the propensity of auditor to issue going concern opinion..

scholarly journals Dinamika Kualitas Audit Di Perbankan Syariah Di Indonesia

2019 ◽  
Vol 5 (2) ◽  
pp. 177-194
Author(s):  
Riani Riani ◽  
Sepky Mardian
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Maximum Level ◽  
Audit Fees ◽  
Firm Reputation ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Independent Audit

This study discusses and understands the competence and independence of auditors on audit quality in sharia banking in Indonesia. While in the discussion the authors analyze the things that are deemed related to the competence and independent audit of auditor tenure or rotation seen through two post-KMK regime and post Act No. 5, Audit firm reputation by looking at audit firm size, audit fees, and auditor competencies determined through background education, certification, experience of work, and frequency of training that followed. The result of the research shows that the limitation of audit tenure does not decrease the quality of audit in sharia banking, the dynamics of audit quality is formed from independent relationship and auditor competence depends on the maximum level of audit

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