We examine the consequences of a 2010 Hong Kong regulation that allows, for the first time, companies incorporated in mainland China and cross-listed in Hong Kong (H share companies) to hire mainland domiciled auditors to audit their Hong Kong financial reports. We find that less than one third...

Effective on December 2016, the Hong Kong Institute of Certified Public Accountants issued a set of new and revised auditing standards that require a discussion of Key Audit Matters (KAMs). We investigate whether KAMs provide incremental information to investors and if the changes to the...

Some have predicted that the next ‘Big N' international firm could be a Chinese CPA firm. Our primary research motivation has been to explore how far this view is shared and whether it is realistic to suppose that one or more Chinese firms, however large they may grow domestically, or even as...

Auditor independence has long been referred to as the cornerstone of the auditing profession. Guanxi refers to the networks of informal relationships and exchanges of favors that dominate all business and social activities that occur throughout China. This research will analyse the impact of...

Auditors identify, assess, and respond to risks of material misstatement in the financial statements of the clients they audit. This study examines whether textual features of key audit matters (KAMs) disclosed in the audit reports of Hong Kong publicly-listed firms are reflected in the pricing...

Research on internal auditor selection has had limited exposure in the auditing literature. Recently Seol & Sarkis introduced a multi-attribute decision model, an analytic hierarchy process (AHP), for the process of internal auditor selection. The purpose of this paper is to extend and validate...

This study examines the impacts of seven types of audit committee expertise (accounting academic, auditing, finance academic, CEO or finance director, other finance, industry and legal expertise) on real earnings management. 1054 firm-year observations are used in the study. The sample firms are...

Since the public has vehemently debated financial scandals like Enron or WorldCom numerous articles asked for ethical responsibility from auditors. The financial scandals were also seen as ethical scandals. A Code of Ethics with moral content could be a potential remedy but the crucial question...