The Pricing of IPO Audit Specialization and Subsequent Issuer Underpricing

We study the costs and benefits to the issuer of engaging an initial public offering (IPO) auditor specialist. We measure IPO auditor specialization and then find that IPO specialist auditors earn significant fee premiums relative to IPO auditors without specialization and that clients with an IPO specialist auditor exhibit lower levels of underpricing relative to clients without an IPO specialist auditor. We also demonstrate that IPO specialist auditors provide higher quality audits than IPO auditors without IPO audit specialization, finding that their IPO clients have a lower likelihood of financial misstatement and have lower discretionary accruals. Collectively, our results have important implications for the auditing profession and capital markets because we demonstrate empirical evidence of the costs and benefits of engaging IPO specialist auditors.

Pengaruh Workload, Spesialisasi Auditor, Rotasi Auditor, Dan Komite Audit Terhadap Kualitas Audit

This research will explain and show the effect of workload, auditor specialization, auditor rotation, audit committee as an independent variable on audit quality which is the dependent variable in manufacturing companies listed on the Bursa Efek Indonesia from 2015 to 2019. This research is important to do because the slow growth of competent public accountants is an important matter that must be considered, given the growing growth of investment activities which has an impact on the increasing need for public accounting services. Seeing from various phenomena of audit failure due to not being an independent auditor and seeing from the point of view of failures based on violations of the code of ethics in the form of inadequate evidence collection so that it is related to the level of workload experienced requires further study. The results of the research and testing of the hypothesis conducted show that the first hypothesis is accepted where there is a significant negative effect between the workload and the quality of the audit results. The second hypothesis is accepted where there is a significant positive effect of auditor specialization on audit quality. The third hypothesis is rejected where there is no significant effect of audit rotation on the audit results. The fourth hypothesis is rejected, where there is no influence from the audit committee on the quality of the audit results.

REPUTASI AUDITOR DAN KARAKTERISTIK PERUSAHAAN TERHADAP MANAJEMEN LABA

The purpose of this study is to analyze the impact of public accountant firm size, auditor specialization, company size, operating cash flow, leverage, return on assets, market to book value ratio, independent commissioners and firm age on earnings management. Purposive sampling method is used to obtain samples from manufacturing companies that listed in Indonesian Stock Exchange during 2015-2018. There are 71 companies meet the criteria and the hypothesis was tested using multiple linear regression analysis. The results indicate that company size, operating cash flow, leverage and return on assets have a significant effect on earnings management. Other independent variables such as public accountant firm size, auditor specialization, market to book value ratio, independent commissioners and firm age have no influence on earnings management.

Determinasi Kualitas Audit Pada Perusahaan Yang Terdaftar Di Indeks Saham Syariah Indonesia

This research aims to examine empirically the influence of the size of the public accounting firms, auditor specialization industry, the size of the audit committee, and audit delay on audit quality. The population of this research is the companies listed in the ISSI. The data are analyzed by using a multiple linear regression. Proxy measurements for audit quality are using discretionary accrual Kazsnik model. Data analysis shows that the size of the public accounting firms, auditor specialization industry, and audit delay influence the audit quality.

Effect of the auditor’s behavioral and individual characteristics on integrated reporting quality: evidence from European companies

Purpose The purpose of this paper is to consist in examining the effect of the auditor’s behavioral and individual characteristics on the integrated reporting quality, in regard to a sample involving 130 European industrial companies, relevant to the year 2017. Design/methodology/approach The present study’s adopted methodology rests on the hypothetico-deductive approach. The relevant data applied are analyzed by means of multiple linear regression models. Findings The reached results prove to indicate well that both auditor specialization and auditor ethics factors appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the audit firm size and auditor behavior have been discovered to have a positive and insignificant effect on the integrated reporting related quality. Originality/value Faced with the scarcity of studies linking the auditor characteristics and the integrated reporting quality, the present study is elaborated to provide some kind of modest contribution, whereby, the determinants of integrated reporting are distinguishably highlighted

The Impact of Auditor Specialization and Banks’ Listing Status on Earnings Management in Vietnamese Commercial Banks

This study investigates the impact of auditor specialization and listing status on earnings management in Vietnamese commercial banks. Discretionary loan loss provisions (LLP) is used as a proxy for earnings management. Based on a sample of 21 banks in the period 2008–2017, the findings show that: First, auditor specialization does not have a significant impact on constraining earnings management in the banks. Second, listed banks engage more in earnings management. In addition, listed banks report more income-increasing LLP, while non-listed banks report more income-decreasing LLP. The results are consistent with a number of prior studies that find no evidence of specialist auditors curtailing earnings management, and listed firms participating more in managing income. The results have important implications for government authorities in improving the legal framework over the preparation of banks’ financial statements, including revision of the accounting standards and alignment of the accounting standards with other banking regulations.

The Relative Role of Firm Incentives, Auditor Specialization, and Country Factors as Antecedents of Nonfinancial Audit Quality

SUMMARY This paper examines the antecedents of nonfinancial audit quality in the novel setting of sustainability assurance (SA). We proxy SA quality by a content analysis of 1,248 publicly available SA statements issued by a panel of G500 firms in the period 2005–2013. Our findings indicate that a higher emphasis on stakeholder engagement and executive compensation schemes linked to sustainability targets are significant internal client incentives for enhanced levels of SA quality. Our study also confirms the importance of supply-side factors, such as auditor competence and auditor specialization, in explaining the heterogeneity of (nonfinancial) audit quality. SA quality appears to be further strengthened if a country's institutional environment privileges the enforcement of a legal infrastructure aimed at the protection of social and environmental dimensions of corporate practices. Our results suggest the complement view of governance mechanisms proposed by Doidge, Karolyi, and Stulz (2007) applies in this emergent nonfinancial auditing market.