Gao, Yanmin; Jamal, Karim; Liu, Qiliang; Luo, Le - 2013
Audit quality is thought to occur primarily due to litigation pressure. We report results from a study conducted in a low litigation environment (China) where a Big 4 audit firm (Deloitte) failed to detect a fraud involving a public company (Kelon). We find that Deloitte’s clients have...