Auditor Specialisation

In this paper, we examine the association amongst listener manufacture long suit and the disclosure of essential control weaknesses (ICWs) by firms that filed first-time separate 404 proclaims with the Securities and alternate Commission (SEC). Using both(prenominal) univariate and logistic reverting analyses, we take a chance that firms audited by perseverance specialist attenders are more(prenominal) likely to motif ICWs than firms audited by non-specialist meeters. Our results therefore provide still evidence that pains specialist attenders are select differentiated. audited account eccentric and its repair on internal control everyplace financial insurance coverage have long been important concerns of legislators, regulators and market place investors, in particular in the aftermath of the financial scandals of the early 2000s. earlier auditor lumber studies indicate that Big 8/6/5 auditors are quality differentiated (Francis & Krishnan, 1999; Lennox , 1999). More young studies call down that even within the Big 8/6/5 group, sedulousness 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 literary productions 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 division 404 reports with the Securities and Exchange Commission ( SEC). We investigate the association 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 partitioning 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 requisite to get a full essay, order it on our website: BestEssayCheap.com

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