The Relative Importance of Auditor Characteristics Versus Client Factors in Explaining Audit Quality
| Autor: | Jere R. Francis, Domenico Campa, Mara Cameran |
|---|---|
| Přispěvatelé: | Accounting & Information Management, RS: GSBE other - not theme-related research |
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
EARNINGS
MANAGERS TEAMS media_common.quotation_subject Economics Econometrics and Finance (miscellaneous) engagement partners OFFICE SIZE Accounting Audit ACCOUNTING FIRMS AUDIT OFFICES ENGAGEMENT PARTNERS EARNINGS QUALITY GOING CONCERN REPORTS RESTATEMENTS 0502 economics and business Earnings quality accounting firms Personality Baseline (configuration management) SHAPLEY media_common EXPERTISE PERSONALITY 050208 finance 1501 Accounting Auditing and Accountability 1502 Banking Finance and Investment Earnings business.industry 05 social sciences earnings quality 050201 accounting audit offices PERFORMANCE going concern reports Quality audit restatements EXPERIENCE LEADERSHIP business Finance |
| Zdroj: | Journal of Accounting, Auditing & Finance, 37(4):0148558X20953059, 751-776. Greenwood Publishing Group Inc. |
| ISSN: | 0148-558X |
| Popis: | The U.K. listed firms are used to investigate whether auditor attributes (fixed effects for audit firms, audit offices, and audit partners) add incrementally to baseline models with client controls in explaining audit quality. We document that accounting firm fixed effects add significantly to baseline models. To the extent an accounting firm can standardize its audits, there should be no differences across engagements. However, we find significant interoffice differences, and also significant inter-partner differences within offices. R2 analyses, hierarchical linear models, LASSO (least absolute shrinkage and selection operator) regressions, and R2 decomposition analyses all show that partners are the most important auditor-related characteristic. To better understand the cause of partner variation, we test a set of partner demographic variables (in lieu of partner fixed effects), but we find that they explain little variation, once we control for firm and office differences. We conclude that partner variation is important in explaining audit quality, but understanding the causes requires going beyond existing publicly available demographic data. |
| Databáze: | OpenAIRE |
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