TY - JOUR
T1 - Audit Office's unused capacity and audit quality
AU - Yu, Chun Chan
AU - Huang, Hua Wei
N1 - Funding Information:
We are grateful for the helpful comments from Steven Lilien, Chansog (Francis) Kim, Jeffrey Pittman, Terrence Martell, Rong Huang, Rong-Ruey Duh, Ling-Tai Lynette Chou, Fu-Jiing Shiue, Shi-Ming Huang, Chen Li, Jeff Zeyun Chen, Wuchun Chi, Nicole Heron, Yu-Ting Hsieh, Chien-Min Pan, Binghao Zhao, Ying-Chu Li, Yung-Chih Lin, and other participants at the Eighth Annual Baruch – SWUFE Joint Research Conference , 2017 AAA Northeast Region Meeting, and 2019 AAA Annual Meeting. Hua-Wei Huang and Chun-Chan Yu gratefully acknowledges the Ministry of Science and Technology, ROC (Taiwan), for support of this work under contract (Project No. MOST 105-2410-H-006 -024 -MY2 and 108-2410-H-005-002 ).
Funding Information:
This paper is based on a part of Chun-Chan Yu's dissertation at National Cheng Kung University, which received the 2019 Outstanding Prize of Ph.D. dissertation of the 12th TSC Thesis Award.We are grateful for the helpful comments from Steven Lilien, Chansog (Francis) Kim, Jeffrey Pittman, Terrence Martell, Rong Huang, Rong-Ruey Duh, Ling-Tai Lynette Chou, Fu-Jiing Shiue, Shi-Ming Huang, Chen Li, Jeff Zeyun Chen, Wuchun Chi, Nicole Heron, Yu-Ting Hsieh, Chien-Min Pan, Binghao Zhao, Ying-Chu Li, Yung-Chih Lin, and other participants at the Eighth Annual Baruch – SWUFE Joint Research Conference, 2017 AAA Northeast Region Meeting, and 2019 AAA Annual Meeting. Hua-Wei Huang and Chun-Chan Yu gratefully acknowledges the Ministry of Science and Technology, ROC (Taiwan), for support of this work under contract (Project No. MOST 105-2410-H-006 -024 -MY2 and 108-2410-H-005-002).
Publisher Copyright:
© 2022 The Authors
PY - 2022
Y1 - 2022
N2 - While prior studies have linked the relationship between resources, time pressure, and audit quality, prior empirical studies generally measure the notion of audit offices' resources or capacity in relatively simplified, indirect, or context-specific ways. In this study, we use two measures of an audit office's unused capacity pertaining to normal audit tasks in Yu (2018) to examine their associations with several proxies for audit quality (discretionary accruals, earnings benchmarks, and going concern audit opinions). Empirical results show some evidence that higher (lower) unused capacity can result in better (worse) audit quality; and if any, this seems to occur only in Big 4 audit offices.
AB - While prior studies have linked the relationship between resources, time pressure, and audit quality, prior empirical studies generally measure the notion of audit offices' resources or capacity in relatively simplified, indirect, or context-specific ways. In this study, we use two measures of an audit office's unused capacity pertaining to normal audit tasks in Yu (2018) to examine their associations with several proxies for audit quality (discretionary accruals, earnings benchmarks, and going concern audit opinions). Empirical results show some evidence that higher (lower) unused capacity can result in better (worse) audit quality; and if any, this seems to occur only in Big 4 audit offices.
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U2 - 10.1016/j.apmrv.2022.07.005
DO - 10.1016/j.apmrv.2022.07.005
M3 - Article
AN - SCOPUS:85136125660
SN - 1029-3132
JO - Asia Pacific Management Review
JF - Asia Pacific Management Review
ER -