Auditor Specialisation

In this paper, we examine the association amongst listener manufacture strong suit and the disclosure of inherent control weaknesses (ICWs) by firms that filed first-time separate 404 proclaims with the Securities and put back Commission (SEC). Using both univariate and logistic reverting analyses, we dislodge that firms audited by persistence specialist attenders are more(prenominal) likely to hide ICWs than firms audited by non-specialist attenders. Our results therefore provide still evidence that intentness specialist tenders are select differentiated. audited account woodland and its intrusion on internal control everyplace financial describe have long been important concerns of legislators, regulators and market place investors, peculiarly in the aftermath of the financial scandals of the early 2000s. earlier auditor grapheme studies indicate that Big 8/6/5 auditors are quality differentiated (Francis & Krishnan, 1999; Lennox, 1999). More young stud ies purpose that even within the Big 8/6/5 group, diligence specialist auditors are considered to be of high quality than non-specialists (Owhoso et al., 2002; Carcello & Nagy, 2002, 2004). The purpose of this study is to expand the auditor quality belles-lettres by investigating the association between auditor quality and firms disclosures.

More specifically, we examine the association between auditor industry specialization and the disclosure of internal control weaknesses (ICWs) by firms that filed first-time slit 404 reports with the Securities and Exchange Commission (SEC). We investigate the association bet ween auditor industry specialization and fir! ms disclosure of ICWs by employ both univariate and logistic regression analyses on a smack of 1,114 firms that filed first-time separate 404 reports with the SEC in 2004. We find that first-time filers that are audited by industry specialist auditors are more likely to report internal control weaknesses than first-time filers that are audited by non-specialists. Our study contributes to the auditor quality...If you privation to get a full essay, order it on our website: BestEssayCheap.com

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