Risk is closely associated with return of investments and materiality. Investments with considerably higher risk normally attract a higher rate of return. Whereas, higher level of risk needs a higher threshold of materiality. There are occasions in which financial managers, fail to take the...

AbstractThe purpose of this article is to establish a framework with its related measures for then development of a balanced scorecard (BSC ) for auditing firms. A BSC was developed providing the detailed measures for performance evaluation comprising five key element s: learning an d growth,...

The International Organisation of Supreme Audit Institutions, cognisant of the complexity of sovereign debt issues, suggests that sufficient technical knowledge is essential in undertaking an audit. Quality public debt management audits require an understanding of the uncertain macroeconomy,...

We investigate the strategic decision making of audit firms in a tendering process. In particular, we are interested in how audit firms behave to acquire audit clients and which audit quality is ensured. Our main findings are manifold. First, if two big audit firms are competing, we do not...

In this paper, we provide empirical evidence for the impact of disciplinary sanctions imposed on Spanish auditing firms and their engagement partners. The disciplinary sanctions resulted from external investigations, which revealed misapplications of auditing standards. In particular, we...

Although researches have extensively studied the relationship between audit quality and financial reporting, little has been said about the consequences to auditors of financial reporting failure in terms of impairment of the audit information role. Based in Taiwan’s unique setting, we...

Utilizing the Finnish setting, this paper examines the association between industry specialization of an individual audit partner and the quality of earnings reported for privately-held companies. Rules in Finland require that the name(s) of the audit engagement partner(s) appear in audit...

Audit quality is a much studied issue. Recently, various auditing researchers have looked at the idea that audit quality may be systematically related to the auditor being male or female. Although this seams a genuine research question, the approach adopted by these researchers (incorporating...

In this study we investigate the association between audit quality and information asymmetry between informed and uninformed traders. We employ three proxies for information asymmetry - absolute price differences, absolute volatility differences, and absolute differences in the long/short ratio...

The purpose of this paper is to examine the value relevance of the perceived audit quality in terms of who audits, as well as the audit outcomes in terms of the auditor's opinion and accruals quality, in the pricing of debt capital for privately-held firms by examining a large sample of...