The purpose of this study is to investigate into the discretionary accruals of the client companies of sanctioned auditors before sanction enforcements and changes thereafter. We find that signed discretionary accruals of the sanctioned auditors' client companies are significantly more favorable...

The purpose of this study is to investigate into the appropriateness and effectiveness of CPA sanction system in Taiwan. We hypothesize that (1) if sanctioned auditors show generally lower audit quality, the sanction system is considered appropriate; and (2) if audit quality is improved after the...

It is instrumental for regulators and policy makers to know the impact of individual sanctions on improving audit quality of the entire firm because many countries in the world enforce disciplinary actions against individual auditors. This paper examines the improvement on audit quality of the...

It would be interesting to know how the theories and hypotheses in auditing developed for a mature economy work in an emerging market. This paper uses the merger of Diwan, Ernst & Young and J.T. Lai & Co., CPAs in Taiwan in 2000 as a target to study the effects of a CPA-firm merger on audit...

It would be interesting to know how the theories and hypotheses in auditing developed for a mature economy work in an emerging market. This paper uses the merger of Diwan, Ernst amp; Young and J. T. Lai amp; Co., CPAs in Taiwan in 2000 as a target to study the effects of a CPA-firm merger on...

According to Dye (1993), the audit is demanded for two reasons. The information role and insurance of auditing is long an important issue of auditing studies. Prior studies have examined the auditor's role in IPO market to test the information role and insurance role of audit market and got...