The auditor's responsibility and independence are crucial issues underlying the independent auditing function and has significant implications on the development of auditing standards and practices. Through a questionnaire survey, this study investigated auditor's responsibility and independence...

One of the most notable changes that economic reform in China has brought about is the revival of its accounting profession. The rapid development of independent auditing over the past two decades has been phenomenal, and from 1995 to 2000, about 15% of listed Chinese companies received modified...

Prior studies suggest that financial accounting audits improve earnings quality and exert positive effects on a firm’s cost of capital/investments. We argue, however, that managers who have experienced prior downward audit adjustments, will react myopically by increasing future real earnings...

The significance of global environmental issues have been further propelled to the forefront, with the current public awareness highlighted by the 2007 United Nations Intergovernmental Panel on Climate Change, Al Gore's global warming statements and the Stern review. As the most populous nation...

This paper investigates the effects of auditors with international working experience on audit quality in emerging markets. Such auditors are associated with better audit quality, a pattern that is further supported by an examination based on a propensity score matching sample that controls for...

This paper shows that politically connected non-Big 4/5 auditors are associated with lower levels of audit quality (proxied by the level of abnormal non-core earnings and the proportion of modified audit opinions) than firms with no political connections. We also show that more economically...

Drawing on herding behavior theory, prior studies regarding the use of peers for investment decisions and compensation practices and the recent reports which suggest that firms use peer information for audit pricing, we examine the effect of peer groups on the audit pricing process of a sample...

The National Audit Office of the People's Republic of China has taken a giant leap forward in 1997 by issuing 38 auditing guidelines for the government audits. This is a step forward to harmonize audit processes and procedures throughout the country, and an attempt to harmonize with...

We take China's anti-corruption campaign as an exogenous shock to test the auditor risk response under political uncertainty. Using multiple DID approach, we use 16207 hand-collected observations from 2207 firms from Central Commission for Discipline Inspection (CCDI) showing that audit fee...