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

Does audit quality mediate the relationship between audit firm size and audit fees

2019 ◽  
Vol 6 (4) ◽  
pp. 279
Author(s):  
Ayman Bader ◽  
Mohammad Ebrahim Nawaiseh ◽  
Halla Noor Nawaiseh
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Firm ◽  
The Relationship

scholarly journals The relation of auditor tenure to audit quality: Empirical evidence from the German audit market

2013 ◽  
Vol 2 (1) ◽  
pp. 27-43 ◽  
Author(s):  
Patrick Krauß ◽  
Henning Zülch
Keyword(s):  
Audit Quality ◽  
The European Union ◽  
Short Term ◽  
Audit Firm ◽  
Audit Market ◽  
Auditor Tenure ◽  
Client Relationship ◽  
Mandatory Audit Firm Rotation

This study investigates whether and how the length of an auditor-client relationship affects audit quality. Using a sample of 1,071 firm observations of large listed companies for the sample period of 2005 to 2011, the study is one of the first to empirically analyze this auditing issue for the German audit market. The empirical results demonstrate that neither short term nor long term audit firm tenure seems to be a significant factor with regard to audit quality in Germany. In the wake of the ongoing discussion in the European Union regarding the optimal audit tenure length for the quality of the conducted statutory audits, our findings do not support the idea of a mandatory audit firm rotation rule.

scholarly journals Audit Office Size, Audit Quality, and Audit Pricing

2010 ◽  
Vol 29 (1) ◽  
pp. 73-97 ◽  
Author(s):  
Jong-Hag Choi ◽  
Chansog (Francis) Kim ◽  
Jeong-Bon Kim ◽  
Yoonseok Zang
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
National Level ◽  
Audit Fees ◽  
Specific Factor ◽  
Audit Pricing ◽  
Audit Firm ◽  
Industry Leadership ◽  
Office Size ◽  
Office Level

SUMMARY: Using a large sample of U.S. audit client firms over the period 2000–2005, this paper investigates whether and how the size of a local practice office within an audit firm (hereafter, office size) is a significant, engagement-specific factor determining audit quality and audit fees over and beyond audit firm size at the national level and auditor industry leadership at the city or office level. For our empirical tests, audit quality is measured by unsigned abnormal accruals, and the office size is measured in two different ways: one based on the number of audit clients in each office and the other based on a total of audit fees earned by each office. Our results show that the office size has significantly positive relations with both audit quality and audit fees, even after controlling for national-level audit firm size and office-level industry expertise. These positive relations support the view that large local offices provide higher-quality audits compared with small local offices, and that such quality differences are priced in the market for audit services.

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..

Does audit quality mediate the relationship between audit firm size and audit fees

2019 ◽  
Vol 6 (4) ◽  
pp. 279
Author(s):  
Halla Noor Nawaiseh ◽  
Ayman Bader ◽  
Mohammad Ebrahim Nawaiseh
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Firm ◽  
The Relationship

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.

scholarly journals Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

2017 ◽  
Vol 9 (1) ◽  
pp. 429 ◽  
Author(s):  
Ngoc Kim Pham ◽  
Hung Nguyen Duong ◽  
Tin Quang Pham ◽  
Nga Thi Thuy Ho
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
Stock Exchange ◽  
Critical Role ◽  
Audit Fees ◽  
Listed Companies ◽  
Developed Countries ◽  
Audit Firm ◽  
Big 4 ◽  
Audit Firms

Audit quality is considered as an essential factor affecting the reliability of financial information. The aim of this study is to assess the effects of audit firm characteristics, including audit reputation, audit fees and audit firm size, on audit quality. A sample of 192 companies listed on Hanoi and Ho Chi Minh Stock Exchange for the period of 2006-2014 was selected. Multiple regression was used to analyze the data. The findings show that Big 4 auditors in Vietnam provide high audit quality than non-Big 4 auditors. Interestingly, in Vietnam context, except for the audit firms in the Big 4 group, the findings suggest that smaller audit firms provide better audit quality. Additionally, the results reveal that the more audit fees the auditors receive, the lower audit quality they provide. The critical role of audit quality has attracted significantly scholarly attention, however, prior studies have mainly focused on firms in developed countries. Little is known about audit quality in an emerging economy context such as Vietnam. This study adds to the limited number of studies on audit quality of listed companies in emerging economies. 

Proposal readability, audit firm size and engagement success

2019 ◽  
Vol 34 (8) ◽  
pp. 871-894 ◽  
Author(s):  
Yu-Tzu Chang ◽  
Dan N. Stone
Keyword(s):  
Firm Size ◽  
Local Governments ◽  
Audit Quality ◽  
Audit Fees ◽  
Content Type ◽  
Audit Firm ◽  
Flesch Reading Ease ◽  
Service Contracts ◽  
Auditor Selection ◽  
State And Local

Purpose This paper aims to examine the effects of firm size on audit proposal readability and audit proposal readability on auditor selection using readability metrics. Design/methodology/approach Adopting the Flesch reading ease readability formula, the authors analyze the readability of 370 hand-collected audit proposals submitted by audit firms for US state and local governments’ audit service contracts. Findings The authors find differences in readability across audit firm size, specifically the proposals written by smaller firms are more readable than those submitted by larger firms. The results further indicate that readability metrics correlate with auditor selection, i.e. an increase in audit proposal readability from the first to third quartile improves the likelihood of a firm winning the engagement by about 6 per cent, ceteris paribus. In addition, while audit fees and an existing auditor–client relationship are associated with engagement success, proxies for audit quality (i.e. audit firm size, audit experience of lead partner) are not. Research limitations/implications The Flesch reading ease measure is a simple linear combination of text attributes, which assumes that readability is a single, unidimensional construct. Simple readability metrics, such as the Flesch reading ease, may confound environmental complexity with readability. Practical implications Readability improves audit proposal success. Originality/value The results provide insight to accounting stakeholders regarding the potential influence of readability on audit firm selection. In short, readability matters.

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