Auditor Tenure and Shareholder Ratification of the Auditor

2008 ◽  
Vol 22 (3) ◽  
pp. 297-314 ◽  
Author(s):  
Mai Dao ◽  
Suchismita Mishra ◽  
K. Raghunandan
Keyword(s):  
Audit Quality ◽  
Direct Evidence ◽  
Empirical Basis ◽  
Auditor Tenure ◽  
Using Data ◽  
The Impact

SYNOPSIS: Legislators and regulators have expressed concerns about the effect of long auditor tenure on audit quality. There is little direct evidence on investors’ perceptions about long auditor tenure. In this paper, we use shareholder votes on auditor ratification as a proxy for investor perceptions about audit quality. We find, using data from 635 firms during 2006, that shareholder votes against (or abstaining from) auditor ratification are positively correlated with auditor tenure. The results suggest that shareholders view long auditor tenure as adversely affecting audit quality, and provide an empirical basis for arguments related to the impact of long auditor tenures on shareholders’ perceptions 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.

Investigating the impact of audit features on money laundering

2020 ◽  
Vol 23 (4) ◽  
pp. 913-930
Author(s):  
Shaban Mohammadi ◽  
Nader Naghshbandi ◽  
Zahra Moridahmadibezdi
Keyword(s):  
Money Laundering ◽  
Audit Quality ◽  
Screening Method ◽  
Audit Fees ◽  
Statistical Population ◽  
Content Type ◽  
Quality Audit ◽  
Auditor Tenure ◽  
Audit Fee ◽  
The Impact

Purpose The purpose of the present study is to investigate the impact of audit features, including audit quality, audit fees and auditor tenure on money laundering in Iranian stock companies. Design/methodology/approach This research is descriptive-correlational and applied in terms of purpose. To evaluate the audit features, variables including audit quality, audit fee and auditor tenure were used. The statistical population of this study includes all companies listed in Tehran Stock Exchange and the research period from 2012 to 2018. A sample of 150 companies was selected by the screening method. In this study, logistic regression and Eviews 10 software were used for data analysis and hypothesis testing. Findings The results showed that variables including audit quality, normal audit fee and auditor tenure have a significant effect on money laundering. Originality/value Observing money laundering rules and regulations for businesses involves is a critical issue. In auditing the financial statements of the business units subject to these laws, the auditor reviews their actions to obtain reasonable assurance of guaranteeing the money laundering laws, evaluates their effectiveness and gains approval of managers regarding observing laundering regulations. In this regard, the auditor is required to report definitive or suspected money-laundering cases or its certain or suspected evidence to the relevant authorities. Although the law prohibits the auditor from disclosing such matters to the client, it is not necessary. It seems that even if the auditors perform non-audit functions, they should report money laundering or suspicious operations and transactions.

MANDATORI ROTASI AUDITOR DAN KUALITAS AUDIT DI INDONESIA

2019 ◽  
Vol 5 (2) ◽  
pp. 54-64
Author(s):  
Wahyu Pramesti ◽  
Sayekti Endah Retno Meilani
Keyword(s):  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Annual Reports ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Using Data ◽  
The Impact

The aims of this study is to determine the impact of audit rotation to audit quality in Indonesia. There are two types of audit rotation, first is rotation of public accounting firms and second is rotation of audit partners. This is quantitave research using 876 samples from members of company listing in Indonesia Stock Exchange from 2013 until 2015. Data colletion from annual reports these companies. These data are processes dan raise the regression equation that satisfy the classic assumtion. Using data from all companies listing in Indonesia Stock Exchange for period 2013 – 2015, we obtained te evidance that audit quality in Indonesia be affected by rotation of public accounting firms and rotation of audit partners. The result show that rotation of audit partners has positive impact to audit quality. While negative impact given by rotation of public accounting firm to audit rotation. It means that the higest frequent of rotating audit partners will increase the audit quality. To the contrary, while higest frequent rotation of public accounting firms will decrease the audit quality.

Does Visibility of an Engagement Partner’s Association with Recent Client Restatements Increase Fee Pressures from Non-Restating Clients?

2021 ◽  
Author(s):  
Wuchun Chi ◽  
Ling Lei Lisic ◽  
Linda A Myers ◽  
Mikhail Pevzner ◽  
Timothy A Seidel
Keyword(s):  
United States ◽  
Audit Quality ◽  
Audit Fees ◽  
The United States ◽  
Limited Evidence ◽  
Partner Disclosure ◽  
Audit Fee ◽  
Using Data ◽  
The Impact ◽  
The U.S

We examine whether engagement partners who have recently been associated with client restatements experience increased audit fee pressures from their non-restating clients. Using data from the United States (U.S.) and Taiwan, we find evidence of lower audit fees among non-restating companies whose audit engagement partner was recently associated with another client’s restatement. These findings are generally strongest when the partner-associated restatement is more prominent or severe, and in the U.S., when non-restating clients are in the same industry as the restating client. Although we find very limited evidence that fee pressures lead to lower quality audits for these partners’ other clients in Taiwan, we find that when the partner-associated restatement is more prominent or severe, fee pressures negatively impact audit quality in the U.S. These findings provide further insight on the impact of engagement partner disclosure for audit quality.

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.

Accent Policy and Accent Modification Enterprises as Potential Indicators of Intercultural Power Relations: A Call for an Updated Research Agenda

2013 ◽  
Vol 3 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Brynne D. Ovalle ◽  
Rahul Chakraborty
Keyword(s):  
International Relations ◽  
Identity Construction ◽  
Social Theory ◽  
Power Relations ◽  
Linguistic Diversity ◽  
Cultural Organization ◽  
Using Data ◽  
The Individual ◽  
The Impact ◽  
The Relationship

This article has two purposes: (a) to examine the relationship between intercultural power relations and the widespread practice of accent discrimination and (b) to underscore the ramifications of accent discrimination both for the individual and for global society as a whole. First, authors review social theory regarding language and group identity construction, and then go on to integrate more current studies linking accent bias to sociocultural variables. Authors discuss three examples of intercultural accent discrimination in order to illustrate how this link manifests itself in the broader context of international relations (i.e., how accent discrimination is generated in situations of unequal power) and, using a review of current research, assess the consequences of accent discrimination for the individual. Finally, the article highlights the impact that linguistic discrimination is having on linguistic diversity globally, partially using data from the United Nations Educational, Scientific and Cultural Organization (UNESCO) and partially by offering a potential context for interpreting the emergence of practices that seek to reduce or modify speaker accents.

Interculturalism and the Acceptance of Minority Groups

2020 ◽  
Vol 51 (2) ◽  
pp. 135-140 ◽  
Author(s):  
Maykel Verkuyten ◽  
Kumar Yogeeswaran
Keyword(s):  
Minority Groups ◽  
Psychological Research ◽  
Survey Experiment ◽  
Social Psychological ◽  
Negative Attitudes ◽  
Positive Attitudes ◽  
Social Psychological Research ◽  
Using Data ◽  
The Impact ◽  
Situational Effect

Abstract. Multiculturalism has been criticized and rejected by an increasing number of politicians, and social psychological research has shown that it can lead to outgroup stereotyping, essentialist thinking, and negative attitudes. Interculturalism has been proposed as an alternative diversity ideology, but there is almost no systematic empirical evidence about the impact of interculturalism on the acceptance of migrants and minority groups. Using data from a survey experiment conducted in the Netherlands, we examined the situational effect of promoting interculturalism on acceptance. The results show that for liberals, but not for conservatives, interculturalism leads to more positive attitudes toward immigrant-origin groups and increased willingness to engage in contact, relative to multiculturalism.

International Remittances and Private Healthcare in Kerala, India

2020 ◽  
Vol 17 (3) ◽  
pp. 445-460
Author(s):  
Mohd Imran Khan ◽  
Valatheeswaran C.
Keyword(s):  
Instrumental Variable ◽  
Capital Investment ◽  
Healthcare Expenditure ◽  
Healthcare Services ◽  
Private Healthcare ◽  
International Remittances ◽  
Variable Approach ◽  
Using Data ◽  
The Impact ◽  
Instrumental Variable Approach

The inflow of international remittances to Kerala has been increasing over the last three decades. It has increased the income of recipient households and enabled them to spend more on human capital investment. Using data from the Kerala Migration Survey-2010, this study analyses the impact of remittance receipts on the households’ healthcare expenditure and access to private healthcare in Kerala. This study employs an instrumental variable approach to account for the endogeneity of remittances receipts. The empirical results show that remittance income has a positive and significant impact on households’ healthcare expenditure and access to private healthcare services. After disaggregating the sample into different heterogeneous groups, this study found that remittances have a greater effect on lower-income households and Other Backward Class (OBC) households but not Scheduled Caste (SC) and Scheduled Tribe (ST) households, which remain excluded from reaping the benefit of international migration and remittances.

The Impact of Accounting and Audit Quality on World Bank Lending Decisions

2012 ◽  
Author(s):  
Phillip T. Lamoreaux ◽  
Paul N. Michas ◽  
Wendy Schultz
Keyword(s):  
World Bank ◽  
Audit Quality ◽  
Bank Lending ◽  
Lending Decisions ◽  
The Impact
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