Auditor Ethnicity and Conservative Auditing Decisions

Abstract

This study explores whether the differences in auditor ethnicity affect their audit decisions The empirical results show that Yellow auditors are more conservative than Whites Compared with Whites Yellows are easier to issue going-concern audit reports and their reports have higher audit delay when they audit a financially distressed company Especially in non-Big 4 firms Yellow auditors are more likely to issue going-concern audit reports This study also finds that the audit delay is higher when Yellows audit a client whose earning quality is low Overall the differences in auditor ethnicity do affect their conservative audit decisions

Date of Award	2019
Original language	English
Supervisor	Ting-Kai Chou (Supervisor)