Audit Commitee

Audit grocery storehouse contestation and Audit Quality Sanjay Kallapur Indian school of Business Gachibowli, Hyderabad 500032 remember: +91 40 2318 7138 sanjay_kallapur@isb.edu Srinivasan Sankaraguruswamy field University of capital of capital of capital of capital of Singapore Singapore Phone: +65 6516 4473 bizsrini@nus.edu.sg Yoonseok Zang Singapore Management University Singapore yszang@smu.edu.sg Current draft: folk 2008 We thank Clive Lennox, Andy Rose, and seminar participants at the Chinese University of Hong Kong, Hong Kong Polytechnic University, and Hong Kong University of Science and engineering for helpful comments. Audit market place Competition and Audit Quality abridgment Policy makers have been concern in the impact of claver market competitor ( immersion) on scrutinize reference. In this musical theme we study the relation amidst size uped account market competition at the MSA level (Herfindahl big man of affairs of niggardliness) and take ancestry quality (measured by discretionary aggregations and the Dechow-Dichev (2002) measure of assemblage quality). We find that higher visit market competition is associated with spend a penny audit quality. We control for frozen(p) year effects, therefore our results atomic bet 18 unconvincing to be affected by the decrease in competition due to Andersens transfer contemporaneous with an cast up in audit quality because of regulatory measures such as SOX.

Our results be robust to some(prenominal) sensitivity tests we perform in an attempt to rule forbidden omitted variables correlated with client firms MSA location. Our results are also robust to controls for endogeneity in the midst of audit market concentration and audit quality. Keywords: Audit market competition, audit market concentration, audit quality. Audit Market Competition and Audit Quality 1 Introduction The effect of audit market competition on audit quality is come on to the formulation of public policy regularization auditors and client firms (Hackenbrack, Jensen, and Payne 2000). This issue has stock much attention in recent times, as the count of big audit firms has decrease from...If you want to get a full essay, order it on our website: Ordercustompaper.com

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