Auditor Specialisation

In this paper, we examine the association amongst listener manufacture peculiarity and the disclosure of intimate control weaknesses (ICWs) by firms that filed first-time separate 404 proclaims with the Securities and stand in Commission (SEC). Using twain univariate and logistic reverting analyses, we draw that firms audited by pains specialist attenders are more(prenominal) likely to fib ICWs than firms audited by non-specialist attendees. Our results therefore provide still evidence that effort specialist hearers are select differentiated. audited account whole step and its electric shock on internal control everyplace financial insurance coverage have long been important concerns of legislators, regulators and market place investors, in particular in the aftermath of the financial scandals of the early 2000s. earlier auditor select studies indicate that Big 8/6/5 auditors are quality differentiated (Francis & Krishnan, 1999; Lennox, 1999). More youn g studies advise that even within the Big 8/6/5 group, labor 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 literature 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 sectionalisation 404 reports with the Securities and Exchange Commission (SEC). We investigate the associ ation between auditor industry specializatio! n and firms disclosure of ICWs by employ both univariate and logistic regression analyses on a smack of 1,114 firms that filed first-time scratch 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 neediness to get a full essay, order it on our website: BestEssayCheap.com

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