scholarly journals ECONOMETRIC APPRAISAL OF AUDITORS’ INDEPENDENT CHARACTERISTICS AND AUDIT QUALITY OF DEPOSIT MONEY BANKS IN NIGERIA

2015 ◽  
pp. 66-81
Author(s):  
Sabo Ahmed ◽  
Alfred Kwanti
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Audit Fees ◽  
Financial Reports ◽  
Audit Firm ◽  
Audit Firms ◽  
Audit Reports

The study examines the characteristics of auditor’s independence on audit quality of Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) from 2010 to 2019. A sample size of seven Deposit Money Banks was selected using the purposive sampling technique. The study used secondary data, sourced from the audited annual financial reports of the sampled banks. The analysis of the data was done using descriptive statistics, correlation matrix, and panel regression technique. The findings reveal that audit independence and audit firm rotation are positively related to audit quality, whereas audit firm tenure relates negatively to audit quality. The relationship between audit fees and audit quality is positively insignificant. The study recommends that audit firms are to be rotated after three years of service so as to avoid over-familiarity that may jeopardize the quality of audit reports. Also, the regulatory bodies should commence the enforcement of the three years audit tenure requirement proposed by stakeholders to forestall lengthy auditor/client relationship.

scholarly journals Pengaruh Kompleksitas Operasi Perusahaan, Umur Perusahaan dan Opini Auditor Terhadap Ketepatwaktuan Laporan Audit

2021 ◽  
Vol 2 (1) ◽  
pp. 31-46
Author(s):  
Nurhairunnisa Nurhairunnisa ◽  
Bambang Bambang ◽  
Robith Hudaya
Keyword(s):  
Stock Exchange ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Linear Regression Models ◽  
Financial Reports ◽  
Mining Companies ◽  
Efficiency And Effectiveness ◽  
Audit Reports

This study aims to determine the effect of the complexity of company operations, company age, and auditor's opinion on the timeliness of audit reports on mining companies listed on the IDX in 2016-2018. The analysis technique used is descriptive analysis with hypothesis testing using multiple linear regression models through SPSS version 22 software. This study uses secondary data, namely annual reports published on the website www.idx.co.id or published through the company's official website. The population of this research is all mining companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sampling technique was using purposive sampling. Based on predetermined criteria, 30 companies were obtained as samples and 90 observations. The results of this study indicate that there is no influence of the complexity of the company's operations, company age, and the auditor's opinion on the timeliness of the audit report. This research is expected to contribute thoughts, information, and benefits to related stakeholders. For public accountants, this research can be used as a reference that can be used in carrying out their audit service practices, especially in an effort to improve the efficiency and effectiveness of audit implementation through managing factors that can affect the timeliness of submitting audit reports so that audit completion can be improved and accelerated. publication of audited financial reports. For investors, these useful concepts of thought and understanding can be used as a reference in reading and analyzing information in making decisions, especially  in matters relating to audited financial reports.

Pengaruh Tingkat Implementasi IFRS dan Kualitas Audit Terhadap Pengakuan Kerugian Tepat Waktu

2020 ◽  
Vol 6 (1) ◽  
pp. 37-43
Author(s):  
Meliantha Olivia ◽  
Putri Nurmala
Keyword(s):  
Quantitative Research ◽  
Audit Quality ◽  
Stock Exchange ◽  
Control Variable ◽  
Secondary Data ◽  
Sampling Technique ◽  
Observation Data ◽  
Financial Reports ◽  
The Impact ◽  
Timely Loss Recognition

This study aims to examine the impact of IFRS implementation and audit quality which represented by client importance on timely loss recognition.This study uses profitability as control variable. This research was conducted in the manufacture companies except BUMN and financial companies which listed in Indonesia Stock Exchange in 2012-2016. This research study used a quantitative research with secondary data. Population in this research are 151 companies, the sample withdrawal method using purposive sampling technique to obtain the number of samples, are 18 companies with 5 years of observation data as much as 90 data. Research data in the form of annual financial reports that published by BEI or Indonesian Stock. Exchange. The data analysis technique that used is multiple linear analysis with the help of SPSS program ver. 21. Based on the result of testing the hypothesis, showed that the implementation of IFRS have a significant impact on timely loss recognition, audit quality as a independent variableand profitability as a control variable doesn’t show any significant impact on timely loss recognition

Board attributes and external audit firm choice of Nigerian Non-financial Firms

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Sanyaolu Wasiu Abiodun ◽  
Animasau Rasheed Olatunji
Keyword(s):  
Audit Quality ◽  
Gender Diversity ◽  
Sampling Technique ◽  
Study Data ◽  
Manufacturing Companies ◽  
Audit Firm ◽  
Financial Firms ◽  
Big 4 ◽  
Audit Firms

The paper examined the influence of boards attributes and audit firm choice of Nigerian listed non-financial firms. In an attempt to achieve the objective of this study, data of 21 sampled manufacturing companies were obtained from 2012 to 2017 using purposive sampling technique. Data for the sampled companies were analysed using logit regression analysis.  The result of the study provides evidence for significant influence of board independence, gender diversity and board meetings on audit firm choice while it board size was found to exert positive but no significant effect on audit firm choice. Arising from this, the study recommends that the non-executive directors should be dominated by directors with adequate level of financial directors that will propel them towards appreciating audit quality while choosing audit firm so as to improve quality of audit work. Also, firm should also seek to know whether audit quality of big 4 audit firms always supersedes that of their non-big 4 counterparts.

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..

Board attributes and external audit firm choice of Nigerian Non-financial Firms

2021 ◽  
Vol 39 (1) ◽  
Author(s):  
Sanyaolu Wasiu Abiodun ◽  
Animasau Rasheed Olatunji
Keyword(s):  
Audit Quality ◽  
Gender Diversity ◽  
Sampling Technique ◽  
Study Data ◽  
Manufacturing Companies ◽  
Audit Firm ◽  
Financial Firms ◽  
Big 4 ◽  
Audit Firms

The paper examined the influence of boards attributes and audit firm choice of Nigerian listed non-financial firms. In an attempt to achieve the objective of this study, data of 21 sampled manufacturing companies were obtained from 2012 to 2017 using purposive sampling technique. Data for the sampled companies were analysed using logit regression analysis.  The result of the study provides evidence for significant influence of board independence, gender diversity and board meetings on audit firm choice while it board size was found to exert positive but no significant effect on audit firm choice. Arising from this, the study recommends that the non-executive directors should be dominated by directors with adequate level of financial directors that will propel them towards appreciating audit quality while choosing audit firm so as to improve quality of audit work. Also, firm should also seek to know whether audit quality of big 4 audit firms always supersedes that of their non-big 4 counterparts.

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. 

scholarly journals Are Audits of Financial Statements Born Unequal?

2017 ◽  
Vol 2 (3) ◽  
pp. 16
Author(s):  
Manh Dung Tran ◽  
Van Anh Doan ◽  
Thi Thuy Bui ◽  
Manh Cuong Nguyen
Keyword(s):  
Hong Kong ◽  
Audit Quality ◽  
Financial Statements ◽  
Financial Reports ◽  
Audit Firm ◽  
Listed Firms ◽  
Goodwill Impairment ◽  
Audit Firms ◽  
Arthur Andersen

Audit is getting more and more importance in assuring the reliability of financial information including financial statements for all parties. Commonly, quality of an audit is viewed as probability that financial reports are free from material irregularities. In the previous literature, there is a positive relationship between size of audit firm and audit quality that has long been understood. This has resulted in many publications to gather evidence of differential audit quality relating to audit firm size. In consequence, the conclusion has been focused that bigger audit firms produce higher audit quality than smaller ones. However, the collapse of many big international audit firms, typically Arthur Andersen has reduced the statement that large audit firms have higher audit quality than small ones. Therefore, this study looks into audit quality basing on the extent of compliance with disclosure requirements pertaining to goodwill impairment of large listed firms in Hong Kong context in the second year transition to IFRS. We found that audit firm identity appears to be a substantial variation, in which compliance levels changed significantly among auditors in the context of Hong Kong.

scholarly journals The effects of audit client tenure, audit lag, opinion shopping, liquidity ratio, and leverage to the going concern audit opinion

2019 ◽  
Vol 4 (1) ◽  
pp. 145-156 ◽  
Author(s):  
Rahmat Akbar Simamora ◽  
Hendarjatno Hendarjatno
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Content Type ◽  
Audit Opinion ◽  
Going Concern ◽  
Opinion Shopping ◽  
Audit Reports

Purpose The going concern audit opinion is an audit opinion issued by an auditor to evaluate the company’s ability in maintaining the business continuity. The purpose of this paper is to discover the effects of audit client tenure, audit lag, opinion shopping, liquidity ratio and leverage on the going concern audit opinion. Design/methodology/approach The study used secondary data obtained from financial reports and independent audit reports published by Indonesian Stock Exchange (ISE) as well as Indonesian Capital Market Directory. Besides, the population of the study included manufacturing companies registered in ISE from 2009 to 2013. Further, the present study applied purposive sampling technique which resulted in 16 companies used as the sample of the study. Then the hypothesis was examined by applying logistic regression. Findings Results of the hypothesis examination indicated that the variables of opinion shopping and leverage affected the going concern audit opinion, whereas the variables of audit client tenure, audit lag and liquidity ratio did not affect the going concern audit opinion. Originality/value Results of the hypothesis examination indicated that the variables of opinion shopping and leverage affected the going concern audit opinion, whereas the variables of audit client tenure, audit lag and liquidity ratio did not affect the going concern audit opinion.

An Empirical Investigation of IPO Underpricing and the Change to the LLP Organization of Audit Firms

2004 ◽  
Vol 23 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Steven R. Muzatko ◽  
Karla M. Johnstone ◽  
Brian W. Mayhew ◽  
Larry E. Rittenberg
Keyword(s):  
Initial Public Offering ◽  
Audit Quality ◽  
Limited Liability ◽  
Litigation Risk ◽  
Ipo Underpricing ◽  
Audit Firm ◽  
Legal Structure ◽  
Audit Firms ◽  
Public Offering

This paper examines the relationship between the 1994 change in audit firm legal structure from general partnerships to limited liability partnerships (LLPs) on underpricing in the initial public offering (IPO) market. The change in legal structure of audit firms reduces an audit firm's wealth at risk from litigation damages and reduces the incentives for intrafirm monitoring by partners within an audit firm. Prior research suggests that underpricing protects underwriters from litigation damages, and that the level of underpricing varies inversely with both the amount of implicit insurance provided by the audit firm and the quality of the audit services provided. We hypothesize the change in audit firm legal structure reduced the assets available from audit firms in IPO-related litigation and indirectly reduced audit quality by lowering intrafirm monitoring. As a result, underwriters have incentives as a joint and several defendant with the audit firms to increase IPO underpricing, particularly for high-litigation-risk IPOs, following audit firms' shifts to LLP status. Our findings are consistent with this hypothesis.

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.

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