scholarly journals Audit Research Summaries

2017 ◽  
Vol 91 (1/2) ◽  
pp. 58-62
Author(s):  
Editorial Office
Keyword(s):  
Audit Committee ◽  
Committee Member ◽  
Onderzoek Naar ◽  
Audit Fee

Ook deze maand presenteren wij weer enkele “Audit Research Summaries” uit de database van de American Accounting Association (www.auditingresearchsummaries. org). De eerste samenvatting betreft een onderzoek naar de invloed van economische relaties tussen verschillende auditklanten, op de kwaliteit van de audit. De onderzoekers vinden bewijs voor de veronderstelling dat de afhankelijkheid van een audit partner van de audit fee van andere klanten in een netwerk - als gevolg van zogeheten ‘audit committee member-audit partner interlocks' - de kwaliteit van de audit in het desbetreffende netwerk vermindert. De volgende samenvatting betreft een onderzoek

scholarly journals Internal Governance Structure and External Audit Fee: Malaysia Evidence

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Maisarah Abd Rahim
Keyword(s):  
Boards Of Directors ◽  
Audit Committee ◽  
Committee Member ◽  
Audit Fees ◽  
Governance Structure ◽  
Audit Committees ◽  
Future Research ◽  
External Audit ◽  
Internal Governance ◽  
Audit Fee

Internal governance structure plays a role in improving quality of financial reporting, thus determining external audit fee is very important. The objective of this study is to examine the association between external audit fees and internal governance structure (boards and audit committee characteristics). The methodology used based on the sample of 115 companies listed on the Bursa Malaysia Main Market in 2015. It is hypothesized that external audit fees will be positively associated with board of director and audit committee’s independence, expertise and meeting frequency. As a result, the findings reveal that no variable found to be significant to external audit fee except for audit committee expertise (audit committees who being accounting professional members). Audit committee expertise indicate negative and significant relationship with external audit fee which implies that the existence more audit committee member who possess accounting professional certification tend to provide complementary effect towards audit effort in the process of negotiating audit fee, thus lower audit fee will be paid. The study suggests there are opportunities to include other variables such as director’s remuneration, ownership structure or /and audit tenure for future research.   Keywords: Corporate Governance, Boards of Directors, Audit Committees, External Audit Fee, Malaysia  

Does Audit Firm Tenure Matter to Audit Committee Members? Evidence from an Accounting Dispute

2018 ◽  
Vol 33 (2) ◽  
pp. 25-41 ◽  
Author(s):  
Janice E. Rummell ◽  
F. Todd DeZoort ◽  
Dana R. Hermanson
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Committee Member ◽  
Audit Firm ◽  
Big 4 ◽  
Analyst Expectations ◽  
Public Company ◽  
Management Experience ◽  
Support Relation

SYNOPSIS This study examines the effects of Big 4 audit firm tenure on audit committee member support for the auditor in an auditor/management dispute over a subjective accounting issue. One hundred eighteen U.S. public company audit committee members participated in an experiment with audit firm tenure (short/long) manipulated randomly between subjects. The results indicate that participants in the long audit firm tenure group provide more support for the auditor in the dispute than participants in the short tenure group. Audit committee support for the auditor is positively related to audit committee member experience and CPA status, as well as perceived management pressure to meet analyst expectations, but negatively related to perceived management experience in financial reporting. Finally, audit committee members' perceptions of audit firm reliability (i.e., credibility and dependability) mediate the audit firm tenure-auditor support relation. Overall, our results suggest enhanced audit committee support for longer-tenured auditors.

Pengaruh Rotasi Audit, Audit Tenure, Fee Audit, Dan Komite Audit Terhadap Kualitas Audit (Studi Pada Perusahaan Food And Beverage Yang Terdaftar Di Bursa Efek Indonesia Tahun 2014-2019)

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Wulan Nada Cahyati ◽  
Eko Hariyanto ◽  
Edi Joko Setyadi ◽  
Nur Isna Inayati
Keyword(s):  
Social Sciences ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Financial Report ◽  
Earnings Surprise ◽  
Audit Fee ◽  
Food And Beverage

Penelitian ini bertujuan untuk menganalis pengaruh rotasi audit, audit tenure, fee audit, dan komite audit terhadap kualitas audit. Penelitan ini merupakan penelitian kuantitatif. Sumber data yang digunakan adalah data sekunder dalam bentuk laporan keuangan tahunan perusahaan. Pada penelitian ini, kualitas audit dihitung dengan menggunakan proksi earning suprise bencmark. Populasi yang digunakan dalam penelitian ini adalah perusahaan food and beverage yang terdaftar di Bursa Efek Indonesia tahun 2014-2019. Pengambilan sampel dilakukan dengan metode non probabilitas dengan teknik purosive sampling dan diperoleh 13 perusahaan sebagai sampel dengan 78 data amatan. Metode analisis data yang digunakan adalah analisis regresi logistik dengan menggunakan program Statistical Package For Social Sciences (SPSS) versi 20. Hasil penelitian ini menunjukan bahwa fee audit berpengaruh positif terhadap kualitas audit. Sedangkan rotasi audit, audit tenure, dan komite audit tidak berpengaruh terhadap kualitas audit.  This research aimed to analyze the effect of audit rotation, audit tenure, audit fee and audit committee on audit quality. This research is a quantitative type. The data source used is secondary data in the form of the company annual financial report. The earnings surprise benchmark used to measure audit quality. This study's population is all of the food and beverage companies listed in Indonesia Stock Exchange during 2014-2019. The sampling technique used is non- probability sampling with purposive sampling technique and obtained 13 companies with 78 observational data. The data analysis method used is logistic regression analysis using Statistical Package For Social Sciences (SPSS) version 20. The result of this study indicates that the audit fee has a positive effect on audit quality. While audit rotation, audit tenure, and audit committee don't affect audit quality. 

Financially Qualified Audit Committee Member and Corporate Sustainability: Evidence from Emerging Economy

2018 ◽  
Author(s):  
Ashfaque Banbhan ◽  
Xinsheng Cheng ◽  
Nizam Ud Din
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Committee Member ◽  
Positive Relation ◽  
Accrual Quality ◽  
The Impact ◽  
The Relationship

This paper examines the relationship between financial qualification of the audit committee (AC) chairman on corporate sustainability (CS) in developing the economy of Pakistan, which has a weak corporate environment. In a sample of companies listed on Pakistan Stock exchange (PSX) during 2010-2014. Empirical results of 1020 firm-year observations indicate that the presence of financially qualified AC chairman has a positive relationship with firm’s accrual quality. The results found that accounting qualification of AC chairman has significant positive relation with CS performance. Furthermore, the study found that powerful CEO is also not able to influence CS in the presence of accounting qualified AC chairman, but this result is not present if AC chairman is non-accounting qualified. This study extends the literature on the impact of accounting qualification of AC members and CS and offers some significant understanding into efficient corporate practices to achieve sustainability goals. This study suggests the presence of accounting qualified member in AC which results in effective monitoring for the increased financial performance of the organization.

Audit committee expertise in large European firms

2020 ◽  
Vol 35 (9) ◽  
pp. 1313-1341
Author(s):  
César Zarza Herranz ◽  
Felix Lopez-Iturriaga ◽  
Nuria Reguera-Alvarado
Keyword(s):  
Audit Committee ◽  
Design Methodology ◽  
Current Knowledge ◽  
Committee Member ◽  
Audit Fees ◽  
Continuous Variable ◽  
Full Time ◽  
Audit Process ◽  
Content Type ◽  
Auditor Rotation

Purpose This paper aims to study how audit committee member expertise is related to certain features of the committee and to the audit process. Design/methodology/approach Based on information from 2,477 directors from 296 firms in eight European countries between 2005 and 2014, this study measures average audit committee expertise using a continuous variable, which combines education-based and experience-based expertise. Different measures of the audit process are then regressed against this and other control variables. Findings Average committee expertise has increased in recent years. Education-based and experience-based expertise seem to be complementary. Results also show that committees with greater expertise meet more frequently, have fewer directors with full-time dedication and pay lower audit fees. There is no link to changes in the external firm audit, which may be due to mandatory auditor rotation. Originality/value The paper provides a comprehensive metric of audit committee expertise that includes directors’ academic background, professional experience and qualifications. In addition, this study expands current knowledge concerning whether and how committee expertise affects the audit process.

The Effects of Corporate Governance Experience and Financial-Reporting and Audit Knowledge on Audit Committee Members' Judgments

2001 ◽  
Vol 20 (2) ◽  
pp. 31-47 ◽  
Author(s):  
F. Todd DeZoort ◽  
Steven E. Salterio
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Committee Member ◽  
Audit Committees ◽  
Corporate Management ◽  
Senior Member ◽  
Conflict Situations ◽  
Ability Tests ◽  
Board Director

Interest in audit committees as part of overall corporate governance has increased dramatically in recent years, with a specific emphasis on member independence, experience, and knowledge. This paper reports the results of a study investigating whether audit committee members' corporate governance experience and financial-reporting and audit knowledge affect their judgments in auditor-corporate management conflict situations. A sample of 68 audit committee members completed an accounting policy dispute case and several knowledge and ability tests. The results indicate that, as expected, greater independent director experience and greater audit knowledge was associated with higher audit committee member support for an auditor who advocated a “substance over form” approach in the dispute with client management. Conversely, concurrent experience as a board director and a senior member of management was associated with increased support for management. Collectively, these findings have a number of implications for practice and research. The results provide justification for calls that audit committees be composed completely of independent directors. The results also support auditor concerns that varying knowledge levels lead to systematic differences in audit committee member judgments in disputes between auditors and management.

Estimating Audit Fees Post-SOX

2008 ◽  
Vol 2 (1) ◽  
pp. A9-A18 ◽  
Author(s):  
Denise E. Dickins ◽  
Julia L. Higgs ◽  
Terrance R. Skantz
Keyword(s):  
Audit Committee ◽  
Audit Fees ◽  
Structured Interviews ◽  
Pricing Models ◽  
Estimation Process ◽  
Regulatory Changes ◽  
Sarbanes Oxley ◽  
Pricing Process ◽  
Audit Fee ◽  
Risk Areas

SYNOPSIS: This article discusses the findings of structured interviews with audit practitioners with a goal of increasing our understanding of the audit fee estimation process and how that process has changed following the passage of the Sarbanes-Oxley Act of 2002 (SOX). The data provide practicing auditors with information that may be helpful in the development or revision of their own audit fee pricing practices. The data are also relevant to audit committee members as they seek to better understand the audit fee pricing process and how potential risk areas or other matters may impact audit fees. Researchers may also find the results of the interviews useful for the enhancement of audit fee pricing models, whether to more-closely align estimation models with the reported fee estimation process, or to revise models to reflect post-SOX economic and regulatory changes.

scholarly journals Effektivitas Komite Audit, Dewan Komisaris Independen dan Biaya Audit

2021 ◽  
Vol 31 (3) ◽  
pp. 667
Author(s):  
Fitri Nurjanah ◽  
Akhmad Imam Amrozi
Keyword(s):  
Linear Regression ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Testing Hypothesis ◽  
Purposive Sampling ◽  
Audit Fee ◽  
Result Show ◽  
Significant Model

The purpose of this study is to analyze the effect of effectiveness of audit committee and independence board of commissioner on audit fee. This research uses samples of Non-financial companies in Indonesia Stock Exchange (IDX) in 2015-2018. The sampling technique used purposive sampling. The total number of companies used as research samples is 584 companies. Using tools SPSS 20 and testing hypothesis using linear regression. The F test indicates a stable and significant model. R square is 49,4%The result show independence board of commissioner and Effectiveness of audit committee can positively significant effect on audit fee because board of commissioners and audit committee wants a higher audit quality from the auditor. Keywords: Board Of Commissioners; Effectiveness Of Audit Committee; Audit Fee.

scholarly journals The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

2022 ◽  
Vol 9 (1) ◽  
pp. 89-99
Author(s):  
Nova Kharlinda ◽  
Iskandar Muda ◽  
Keulana Erwin
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Fees ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Factors Affecting ◽  
Analysis Technique ◽  
Audit Fee ◽  
Public Accountant

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

Sign in / Sign up

Export Citation Format

Share Document