Engagement partners participating in auditing standard setting and audit quality*

Tsing Zai C. Wu, Hua-Wei Huang, Chun Chan Yu, Ching Hui Wu

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

In this study, we investigate whether engagement partners who participate in the national auditing standard setting can provide better audit quality, and explore the underlying cause in the context of Taiwan, where the name of engagement partners can be identified in audit reports. The empirical results indicate that firms audited by incumbent Auditing Standards Committee (ASC) member auditors are associated with lower discretionary accruals and a lower probability of having small profits. The results support the view that concerns about the impairments of increased reputational capital may be the most likely cause that explains the ASC member auditors’ better audit quality. This study also provides the benefits that can arise from the identification of engagement partners.

Original languageEnglish
Pages (from-to)1-21
Number of pages21
JournalAsia-Pacific Journal of Accounting and Economics
DOIs
Publication statusAccepted/In press - 2017 Nov 22

Fingerprint

Audit quality
Auditing standards
Auditors
Incumbents
Discretionary accruals
Profit
Taiwan
Lower probabilities
Empirical results
Audit reports
Impairment

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

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Engagement partners participating in auditing standard setting and audit quality* . / Wu, Tsing Zai C.; Huang, Hua-Wei; Yu, Chun Chan; Wu, Ching Hui.

In: Asia-Pacific Journal of Accounting and Economics, 22.11.2017, p. 1-21.

Research output: Contribution to journalArticle

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