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.

Impact of firm’s specific factors on audit fee of quoted consumer goods firms

2020 ◽  
Vol 4 (1) ◽  
pp. 47-55
Author(s):  
Wasiu Ajani Musa ◽  
Ramat Titilayo Salman ◽  
Ibrahim Olayiwola Amoo ◽  
Muhammed Lawal Subair
Keyword(s):  
Consumer Goods ◽  
Audit Quality ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
P Value ◽  
Chi Square ◽  
Ifrs Adoption ◽  
Audit Fee ◽  
Specific Factors ◽  
The Impact

Greater pricing presume on audit service has been put by the regulations of the auditing and accounting practices for the disclosure of audit fees, since audit fee is directly related to audit quality. However, the audit fees perceived by the client is often different from the amount charged by the auditors. Hence, this study investigated the impact of firm-specific characteristics on audit fees of quoted consumer goods firms in Nigeria using a purposive sampling technique. Secondary data were obtained from annual reports of the companies for the period from 2009-2016. The empirical result from Breusch-Pagan Lagrange Multiplier Test (BP-LM) produced a chi-square value of 13.94 with p-value of 0.0001 indicating that pooled ordinary least squares (OLS) will not be appropriate for the study. The Hausman test showed a chi-square of 23.55 with a p-value of 0.001 indicating that the null hypothesis is strongly rejected. Thus, the only estimate from the fixed effect model was interpreted to explain the relationship between firm-specific characteristics and audit fees of quoted consumer goods firms in Nigeria. The result revealed that auditee size, auditee risk, auditee profitability and IFRS adoption are the firm specific characteristics that impact on audit fees with only auditee size and IFRS adoption being positively related to audit fees while the other factors are negatively related to audit fees. Based on this finding, this study concluded that the firm’s specific factors are the major drivers of audit fees in Nigeria consumer goods firms. This study recommends among others that companies should implement corporate governance principles that address issues relating to board independence and committee sizes to guide activities in the consumer goods sector since profitability behave negatively with audit fees.

THE INFLUENCE OF SCOTTISH ACCOUNTANTS IN THE UNITED STATES: THE EARLY CASE OF THE SOCIETY OF ACCOUNTANTS IN EDINBURGH

1997 ◽  
Vol 24 (1) ◽  
pp. 117-141 ◽  
Author(s):  
T. A. LEE
Keyword(s):  
United States ◽  
General Theory ◽  
Research Program ◽  
The United States ◽  
The World ◽  
Early Case ◽  
The Impact ◽  
Chartered Accountants ◽  
The U.S

This study represents part of a long-term research program to investigate the influence of U.K. accountants on the development of professional accountancy in other parts of the world. It examines the impact of a small group of Scottish chartered accountants who emigrated to the U.S. in the late 1800s and early 1900s. Set against a general theory of emigration, the study's main results reveal the significant involvement of this group in the founding and development of U.S. accountancy. The influence is predominantly with respect to public accountancy and its main institutional organizations. Several of the individuals achieved considerable eminence in U.S. public accountancy.

The Effect of Office Changes within Audit Firms on Clients' Audit Quality and Audit Fees

2020 ◽  
Vol 39 (1) ◽  
pp. 71-99
Author(s):  
Carl W. Hollingsworth ◽  
Terry L. Neal ◽  
Colin D. Reid
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Additional Analysis ◽  
Audit Firm ◽  
Audit Firms ◽  
Audit Fee ◽  
The Impact ◽  
Audit Partner Rotation

SUMMARY While prior research has examined audit firm and audit partner rotation, we have little evidence on the impact of within-firm engagement team disruptions on the audit. To examine these disruptions, we identify a unique sample of companies where the audit firm issuing office changed but the audit firm did not change and investigate the effect of these changes on the audit. Our results indicate that companies that have a change in their audit firm's issuing office exhibit a decrease in audit quality and an increase in audit fees. In additional analysis, we partition office changes into two groups—client driven changes and audit firm driven changes. This analysis reveals that client driven changes are more likely to result in a higher audit fee while audit quality is unchanged. Conversely, audit firm driven changes do not result in a higher audit fee but do experience a decrease in audit quality.

Overeducation and the Earnings of Black, Hispanic, and White Male Workers

1988 ◽  
Vol 31 (2) ◽  
pp. 190-212 ◽  
Author(s):  
Richard R. Verdugo ◽  
Naomi Turner Verdugo
Keyword(s):  
United States ◽  
Mexican Americans ◽  
Minority Groups ◽  
Puerto Ricans ◽  
White Male ◽  
The United States ◽  
Using Data ◽  
The Impact ◽  
Male Workers ◽  
White Minority

This study addresses two issues: (1) the impact of overeducation on the earnings of male workers in the United States, and (2) white-minority earnings differences among males. Given that educational attainment levels are increasing among workers, there is some suspicion that earnings returns to education are not as great as might be expected. This topic is examined by including an overeducation variable in an earnings function. Regarding the second issue addressed in this article, little is actually known about white-minority differences because the bulk of such research compares whites and blacks. By including selected Hispanic groups in this analysis (Mexican Americans, Puerto Ricans, Cubans, and Other Hispanics) we are able to assess white-minority earnings differences to a greater degree. Using data from a 5% sample of the 1980 census to estimate an earnings function, we find that overeducated workers earn less than either undereducated or adequately educated workers. Second, we find that there are substantial earnings differences between whites and minorities, and, also, between the five minority groups examined.

Disproportionately Overrepresented: Women in Local Elected Offices

2018 ◽  
Vol 50 (3) ◽  
pp. 165-176 ◽  
Author(s):  
Ethan M. Bernick ◽  
Brianne Heidbreder
Keyword(s):  
United States ◽  
Maximum Likelihood ◽  
Gender Norms ◽  
The United States ◽  
Census Bureau ◽  
National Association ◽  
County Level ◽  
Political Factors ◽  
Using Data ◽  
The U.S

This research examines the position of county clerk, where women are numerically disproportionately over-represented. Using data collected from the National Association of Counties and the U.S. Census Bureau, the models estimate the correlation between the county clerk’s sex and county-level demographic, social, and political factors with maximum likelihood logit estimates. This research suggests that while women are better represented in the office of county clerk across the United States, when compared to other elective offices, this representation may be because this office is not seen as attractive to men and its responsibilities fit within the construct of traditional gender norms.

scholarly journals Tenure, Turnover, And Earnings Profiles In Germany And The United States

2011 ◽  
Vol 1 (9) ◽  
Author(s):  
Kenneth A. Couch
Keyword(s):  
United States ◽  
Panel Study ◽  
The United States ◽  
Job Turnover ◽  
Income Dynamics ◽  
Employment Tenure ◽  
Returns To Experience ◽  
Using Data ◽  
The U.S ◽  
Male Workers

Employment tenure, job turnover and returns to general and specific skills are examined for male workers in Germany and the United States using data from the German Socio-Economic Panel and the Panel Study of Income Dynamics.  Employment in Germany is characterized by longer duration and less frequent turnover than in the United States.  Returns to experience and tenure are lower in Germany than in the U.S.; however, peak earnings occur later.  This delayed peak in the employment-earnings profile provides an incentive for German workers to remain longer with their employers and change jobs less frequently.

scholarly journals Language and translation practices of Spanish-language newspapers published in the U.S. borderlands between 1808 and 1930

2019 ◽  
Vol 14 (2) ◽  
pp. 218-242 ◽  
Author(s):  
Laura Gasca Jiménez ◽  
Maira E. Álvarez ◽  
Sylvia Fernández
Keyword(s):  
United States ◽  
Language Use ◽  
The United States ◽  
Spanish Language ◽  
Hispanic American ◽  
Language Policies ◽  
The Creation ◽  
The Impact ◽  
The U.S

Abstract This article examines the impact of the anglicizing language policies implemented after the annexation of the U.S. borderlands to the United States on language use by describing the language and translation practices of Spanish-language newspapers published in the U.S. borderlands across different sociohistorical periods from 1808 to 1930. Sixty Hispanic-American newspapers (374 issues) from 1808 to 1980 were selected for analysis. Despite aggressive anglicizing legislation that caused a societal shift of language use from Spanish into English in most borderland states after the annexation, the current study suggests that the newspapers resisted assimilation by adhering to the Spanish language in the creation of original content and in translation.

Innovation Drives the Economy—an Old Idea with New Implications

2012 ◽  
Author(s):  
Elizabeth Popp Berman
Keyword(s):  
United States ◽  
The United States ◽  
Technological Leadership ◽  
The 1950S ◽  
The Impact ◽  
The U.S

This chapter begins by introducing market-logic experiments undertaken in the mid-1970s. Like earlier efforts, these practices encountered limitations and did not, at the time, look poised to take off. But this time, things would be different, as a new idea started to gain influence in the policy realm. While economists had been looking seriously at the impact of innovation since the 1950s, policymakers' attention to the issue was limited before 1970. A spurt of interest in innovation in the early 1970s fizzled out when the economy rebounded briefly, but as the economy lost steam mid-decade, industry leaders, concerned with indicators suggesting that the United States was losing its technological leadership, began to push the idea that government needed to act to strengthen innovation. In the latter part of the decade, the innovation issue would become politically salient and influential, and would shape a variety of policies meant to strengthen the U.S. economy.

Credit Risk Measurement, Leverage Ratios, and Basel III

2017 ◽  
pp. 86-116
Keyword(s):  
United States ◽  
The United States ◽  
Basel Iii ◽  
Holding Companies ◽  
Leverage Ratio ◽  
Basel Committee ◽  
Legislative Changes ◽  
Credit Risk Measurement ◽  
The Impact ◽  
The U.S

The Basel III Leverage Ratio, as originally agreed upon in December 2010, has recently undergone revisions and updates – both in relation to those proposed by the Basel Committee on Banking Supervision – as well as proposals introduced in the United States. Whilst recent proposals have been introduced by the Basel Committee to improve, particularly, the denominator component of the Leverage Ratio, new requirements have been introduced in the U.S to upgrade and increase these ratios, and it is those updates which relate to the Basel III Supplementary Leverage Ratio that have primarily generated a lot of interests. This is attributed not only to concerns that many subsidiaries of US Bank Holding Companies (BHCs) will find it cumbersome to meet such requirements, but also to potential or possible increases in regulatory capital arbitrage: a phenomenon which plagued the era of the original 1988 Basel Capital Accord and which also partially provided impetus for the introduction of Basel II. This paper is aimed at providing an analysis of the recent updates which have taken place in respect of the Basel III Leverage Ratio and the Basel III Supplementary Leverage Ratio – both in respect of recent amendments introduced by the Basel Committee and proposals introduced in the United States. As well as highlighting and addressing gaps which exist in the literature relating to liquidity risks, corporate governance and information asymmetries, by way of reference to pre-dominant based dispersed ownership systems and structures, as well as concentrated ownership systems and structures, this paper will also consider the consequences – as well as the impact - which the U.S Leverage ratios could have on Basel III. There are ongoing debates in relation to revision by the Basel Committee, as well as the most recent U.S proposals to update Basel III Leverage ratios and whilst these revisions have been welcomed to a large extent, in view of the need to address Tier One capital requirements and exposure criteria, there is every likelihood, indication, as well as tendency that many global systemically important banks (GSIBS), and particularly their subsidiaries, will resort to capital arbitrage. What is likely to be the impact of the recent proposals in the U.S.? The recent U.S proposals are certainly very encouraging and should also serve as impetus for other jurisdictions to adopt a pro-active approach – particularly where existing ratios or standards appear to be inadequate. This paper also adopts the approach of evaluating the causes and consequences of the most recent updates by the Basel Committee, as well as those revisions which have taken place in the U.S, by attempting to balance the merits of the respective legislative updates and proposals. The value of adopting leverage ratios as a supplementary regulatory tool will also be illustrated by way of reference to the impact of the recent legislative changes on risk taking activities, as well as the need to also supplement capital adequacy requirements with the Basel Leverage ratios and the Basel liquidity standards.

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.

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