Auditor Specialisation

In this paper, we examine the association amongst listener manufacture speciality and the disclosure of inbred control weaknesses (ICWs) by firms that filed first-time separate 404 proclaims with the Securities and commutation Commission (SEC). Using some(prenominal) univariate and logistic reverting analyses, we light upon that firms audited by constancy specialist attenders are more(prenominal) likely to chronicle ICWs than firms audited by non-specialist attendees. Our results therefore provide still evidence that industriousness specialist attendants are select differentiated. audited account part and its tint on internal control everyplace financial reportage have long been important concerns of legislators, regulators and market place investors, curiously in the aftermath of the financial scandals of the early 2000s. earlier auditor fibre studies indicate that Big 8/6/5 auditors are quality differentiated (Francis & Krishnan, 1999; Lennox, 1999). Mor e young studies evoke that even within the Big 8/6/5 group, perseverance 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 writings 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 plane section 404 reports with the Securities and Exchange Commission (SEC). We investigate the associa tion between auditor industry specialization! and firms disclosure of ICWs by employ both univariate and logistic regression analyses on a smack of 1,114 firms that filed first-time function 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 exigency to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper