Audit Partner Public-Client Specialisation and Client Abnormal Accruals
| Autor: | Emma-Riikka Myllymäki, Kim Ittonen, Karla M. Johnstone |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Economics and Econometrics
business.industry Accrual Economics Econometrics and Finance (miscellaneous) Accounting Sample (statistics) Audit Quality audit Negatively associated health services administration Business Management and Accounting (miscellaneous) Portfolio Business and International Management business ta512 Finance |
| Zdroj: | European Accounting Review. 24:607-633 |
| ISSN: | 1468-4497 0963-8180 |
| DOI: | 10.1080/09638180.2014.906315 |
| Popis: | We examine the association of Big 4 audit partners’ public-client specialisation with client companies’ audit quality. Using a sample of NASDAQ OMX companies in Finland, we identify the audit partner assigned to each public-client engagement. We expect that partners with greater public-client specialisation provide higher quality auditing, since they have likely developed deep domain-specific knowledge and a keen sense of the litigation and reputational risks posed by public clients. In addition, the willingness to resist client pressure likely increases with the number of public clients in the partner's portfolio because dependence on any one client diminishes, which should help to ensure audit quality. The results show that public-client specialisation is negatively associated with abnormal accruals, and this result is attributable to audit partners with three to six public clients. The results of supplemental tests imply that public-client specialisation is more important when general auditing ... |
| Databáze: | OpenAIRE |
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