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 journalArticlepeer-review

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)591-611
Number of pages21
JournalAsia-Pacific Journal of Accounting and Economics
Volume27
Issue number5
DOIs
Publication statusPublished - 2020 Sep 2

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

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