Academic literature on the topic 'Auditor switching'
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Journal articles on the topic "Auditor switching"
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MohammadRezaei, Fakhroddin, and Norman Mohd-Saleh. "Auditor switching and audit fee discounting: the Iranian experience." Asian Review of Accounting 25, no. 3 (September 11, 2017): 335–60. http://dx.doi.org/10.1108/ara-06-2016-0070.
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Purpose The purpose of this paper is to examine the impact of auditor switching on audit fee discounting in Iran. The increased competition in the Iranian audit market following audit market liberalization in 2001 has resulted in a rapid increase in auditor switching and reduces the relative bargaining power of auditors compared to the clients. It is expected that auditor switching results in fee discounting because the relative bargaining power of an auditor (client) is likely to be at the minimum (maximum) point during the initial period of engagement. Since the increased bargaining power of a client in initial year seems to be different in the case of different type of auditor switching (from a state auditor to a private and from a private auditor to another), the magnitude of fee discounting is expected to be different. Design/methodology/approach The objective is tested using a sample of 1,022 firm-year observations between 2001 and 2010. This study applies the multivariate regression model using the first difference specification of audit fee as a dependent variable. Findings Multivariate analysis reveals that auditor switching results in 14 percent of fee discounting. In addition, the results show that 18 and 13 percent of fees discounting during the initial year of engagement arise from cases of auditor switching involving a change from state auditors to private auditors, and a change from one private auditor to another, respectively. The findings support bargaining power view explanation in relation to audit fees discounting in initial year engagement. Originality/value This study is the first to examine the impact of auditor switching (and analyzed different types of auditor switching) on audit fee discounting using the bargaining power view.
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Supriyanto, Supriyanto, and Heni Rachmawati. "Analisis Pengaruh Karakteristik Audit, Karakteristik Perusahaan, dan Proporsi Komisaris Independen terhadap Pertukaran Auditor pada Perusahaan yang Terdaftar di Bursa Efek Indonesia." Global Financial Accounting Journal 5, no. 2 (October 31, 2021): 50. http://dx.doi.org/10.37253/gfa.v5i2.6043.
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Auditor switching occurs when the old Public Accounting Firm (PAF) is replaced with a new PAF. This study is aim to analyze the factors that effect auditor switching to happen. Purposive sampling method was used in this study to to obtain the sample and sourced from the companies’ annual reports listed on the Indonesia Stock Exchange from 2015 to 2019. The test used binary logistic regression and was processed using the SPSS version 21 program. The results of data analysis indicate that financial distress, auditor reputation and opinion auditors have a significant and positive impact on auditor switching. Profitability has a significant and negative impact on auditor switching. Changes in management and the proportion of independent commissioners have no significant impact on auditor switching.
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Fenny, Fenny, Rasinta Ria Ginting, and Enda Noviyanti Simorangkir. "The The Influence of Management Change, Audit Opinion, and Audit Fee on Auditor Switching with Financial Distress as a Moderating Variable in Property and Real Estate Companies Listed on the Indonesia Stock Exchange." International Journal of Social Science Research and Review 5, no. 9 (September 9, 2022): 47–61. http://dx.doi.org/10.47814/ijssrr.v5i9.426.
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Every company, especially those that are growing, needs a lot of support from investors. Investors will think of injecting funds when the company has high profits and low bankruptcy risk. Therefore, large companies choose to use KAP services when auditing financial statements. Auditor Switching is the change of auditors by the company or the auditors themselves, and the purpose is to maintain auditor independence. This study was conducted to determine the influence of Management Change, Audit Opinion, and Audit Fee on Auditor Switching with Financial Distress as a moderating variable in property and real estate companies listed on the Indonesia Stock Exchange from 2019-2021. The sample was taken using purposive sampling, where the population was 62 companies, and after deducting the research criteria, the research sample consisted of 32 companies, so that in 3 years there were 96 companies. Statistical test using Structural Equation Modeling (SEM) with Partial Least Square (PLS) approach. The results of the study simultaneously show that Management Change, Audit Opinion and Audit Fee affect Auditor Switching. Partially, the Path coefficient shows that the Management Change and Audit Opinion has a positive and significant influence on Auditor Switching. Audit Fee has a negative and significant influence on Auditor Switching. While Financial Distress is not able to moderate the influence of Management Change and Audit Opinion on Auditor Switching, Financial Distress can moderate the influence of Audit Fees on Auditor Switching.
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Kuo, Li-Chun, Chan-Jane Lin, and Hsiao-Lun Lin. "Auditor switch decisions under forced auditor change: evidence from China." Asian Review of Accounting 24, no. 1 (February 1, 2016): 69–89. http://dx.doi.org/10.1108/ara-03-2014-0035.
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Purpose – From 2000 to 2007, 14 Chinese accounting firms had their audit licenses terminated or suspended for different reasons, forcing clients of these accounting firms to select new auditors within a short period of time. The purpose of this paper is to examine the auditor switching patterns and audit partner following decision of these clients and the effect of both client and (terminated or suspended) auditor characteristics on the auditor change decisions. Design/methodology/approach – By using 245 (191) clients of terminated or suspended audit firms, the authors apply logistic regressions to investigate clients’ switching decision (following decision). Findings – The empirical results indicate that state-owned enterprises tend not to switch to Big 4 audit firms; clients with dual shares tend to choose from the Big 4 for their succeeding audit firms. Moreover, companies whose preceding auditors received severe regulatory sanctions are less likely to switch to auditors of higher quality; companies who hired local auditors are more likely to follow their preceding audit partners as a result of forced auditor change. Originality/value – This study enriches forced auditor change literature by discussing both clients’ and preceding auditor’s attributes on clients’ switching and following decisions.
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Knechel, W. Robert, Vic Naiker, and Gail Pacheco. "Does Auditor Industry Specialization Matter? Evidence from Market Reaction to Auditor Switches." AUDITING: A Journal of Practice & Theory 26, no. 1 (May 1, 2007): 19–45. http://dx.doi.org/10.2308/aud.2007.26.1.19.
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Numerous capital market studies have investigated the stock market's reaction to firms switching to and from brand name auditors (Big 8/6/5/4 auditors). However, audit firm brand name is only one possible indication of the quality of an auditor. This study contributes to the existing literature on auditor switching, by examining how the market reacts to auditor switches to or from audit firms that are considered to be industry specialists. Consistent with our hypotheses, we find that firms switching between Big 4 auditors experience significant positive abnormal returns when the successor auditor is an industry specialist, and they experience significant negative abnormal returns when the successor auditor is not a specialist. We also find that these market reactions are more likely to be due to changes in perceived audit quality rather than differential costs of using specialist auditors. In supplemental analysis of switches involving non-Big 4 auditors, we find that firms that switch from a specialist Big 4 auditor to a non-Big 4 auditor suffer the largest negative market reaction. Surprisingly, we also observe that the market reacts most positively when a company switches from a non-Big 4 auditor to a Big 4 auditor who is not a specialist. These results suggest that the market does perceive audit quality differences based on industry specialization to be relevant to the valuation of a company's market value.
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Kamarudin, Khairul Anuar, Ainul Islam, Ahsan Habib, and Wan Adibah Wan Ismail. "Auditor switching, lowballing and conditional conservatism: evidence from selected Asian countries." Managerial Auditing Journal 37, no. 2 (January 4, 2022): 224–54. http://dx.doi.org/10.1108/maj-01-2020-2530.
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Purpose This paper aims to investigate the effect of auditor switching and lowballing on conditional conservatism, particularly how different types of auditor switching, namely, upward, downward and lateral switching to/from Big 4 and industry specialists, affect earnings quality in the following selected Asian countries: Indonesia, Malaysia, the Philippines, South Korea and Thailand. Design/methodology/approach Using conditional conservatism as a proxy for earnings quality, this study hypothesises that upward switching from non-Big 4 to Big 4 auditors, or from non-specialist to specialist auditors, would result in high conditional conservatism, while downward switching would lead to low conditional conservatism. The study further tests whether lowballing provides a viable explanation for reduced earnings conservatism in firms that switch from Big 4 to non-Big 4 auditors, or from specialist to non-specialist auditors. Findings The analysis, on a sample of 28,073 firm-year observations from 2007 to 2016, shows that the decision to downgrade auditors leads to lower conditional conservatism in the year of switching, compared with other firms and the pre-switching year. The evidence further shows that, when firms downgrade their auditors, lowballing contributes to a decrease in conditional conservatism in the first year of audit switching. Further, this research finds that switching to specialist auditors will result in increased conditional conservatism, while switching from specialist auditors to non-specialist auditors will result in reduced conditional conservatism. Practical implications The findings of this study are useful to investors who are looking to diversify their investment portfolio in developing markets, as evidence about auditor switching and quality of financial reporting may be an important factor in their investment decisions. Downward auditor switches and lowballing could act as red flags to investors in the sense that these events could signal a decrease in conditional conservatism and, hence, quality of earnings. Originality/value This research offers new evidence to support the view that management decisions to switch to lower-quality auditors will force newly appointed auditors to acquiesce to clients’ demands for reporting low-quality earnings.
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Tomy, Chairian, Arfan Ikhsan, and Andri Zainal. "EFFECT OF AUDIT DELAY, AUDIT QUALITY AND LEVERAGE AGAINST FINANCIAL REPORTING FRAUD: AUDITOR SWITCHING AS A VARIABLE." Jurnal Ilmiah Teunuleh 3, no. 1 (March 28, 2022): 1–11. http://dx.doi.org/10.51612/teunuleh.v3i1.82.
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This study aims to show the influence of variable audit delays, audit quality and leverage, on financial reporting fraud: auditor switching as intervening variables on idX-listed property, real estate, and building construction companies. The population of this study is 85 companies, by accessing financial statements and auditor reports through the Indonesia Stock Exchange website. The sampling method used is the purposive sampling method, so 30 sample companies were obtained for 3 years of observation (2018-2020) with 90 units of analysis. The data analysis method used is the logistic regression method. Based on the results of data processing using the logistic regression method with SPSS software, it is known that simultaneous audit delays, audit quality and levarage have a significant influence on auditor switching at a significance level of 5%. Similarly, the influence that occurs between switching audiors on financial reporting fraud is statistically significant at a significance level of 5%. Switching auditors are also able to mediate the relationship between audit delay, audit quality and leverage against financial reporting fraud with a significance level of 5%.
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Mahariyani, Afrah Junita, and Tuti Meutia. "PENGARUH OPINI AUDIT DAN AUDIT REPORT LAG TERHADAP VOLUNTARY AUDITOR SWITCHING DENGAN FINANCIAL DISTRESS SEBAGAI PEMODERASI PADA PERUSAHAAN PERINDUSTRIAN YANG TERDAFTAR DI BEI." Jurnal Mahasiswa Akuntansi Samudra 3, no. 2 (July 30, 2022): 92–106. http://dx.doi.org/10.33059/jmas.v3i2.4996.
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The purpose of this study was to examine the effect of Audit Opinion and Audit Report Lag on Voluntary Auditor Switching with Financial Distress as a moderating variable. The data analysis method used is the classical assumption test such as: data normality test, multicollinearity test, autocorrelation test and heteroscedasticity test as well as hypothesis testing such as multiple linear regression test, interaction test or what is commonly called moderated regression analysis, individual parameter significant test (partial test), simultaneous significance test (simultaneous test) and coefficient of determination test (R2). The result of the multiple linear regression equation is Y= -0.915 + 0.024 X1 + 0.016 X2 - 0.088 M - 0.023 X1*M + 0.001 X2*M + e. Partially, audit opinion has no significant effect on voluntary auditor switching, audit report lag has no significant effect on voluntary auditor switching and financial distress has no significant effect on voluntary auditor switching. Based on the moderated regression analysis test partially financial distress cannot moderate the effect of audit opinion on voluntary auditor switching and financial distress cannot moderate the effect of audit report lag on voluntary auditor switching and simultaneously financial distress cannot moderate the effect of audit opinion and audit report lag on voluntary switching auditors.
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Dewi, Ni Kadek Rina Mita, and Ni Ketut Muliati. "PENGARUH FINANCIAL DISTRESS, PERGANTIAN MANAJEMEN DAN PERTUMBUHAN PERUSAHAAN TERHADAP AUDITOR SWITCHING." Hita Akuntansi dan Keuangan 2, no. 3 (July 26, 2021): 202–18. http://dx.doi.org/10.32795/hak.v2i3.1809.
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Auditor switching is a change of auditors carried out by a company either compulsory or voluntarily. This study aims to examine how the effect of financial distress, change of management and company growth on auditor switching in manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2019. The population of this study is manufacturing companies on the Indonesia Stock Exchange 2015-2019, namely 169 companies . This type of research is quantitative and the sampling technique uses purposive sampling method, so that the sample obtained is 420 samples from 84 companies. The analysis method used in this research is logistic regression analysis. Based on the results of the analysis test, it was found that financial distress and management changes had no significant effect on auditor switching. Meanwhile, company growth has a positive and significant effect on auditor switching.
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Arsih, Luki. "PTHE INFLUENCE OF GOING CONCERN OPINIONS, MEASURES AND PROFITABILITY ON AUDITORS SWITCHING." Jurnal Ekonomi 10, no. 01 (June 1, 2021): 9–12. http://dx.doi.org/10.54209/ekonomi.v10i01.56.
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Auditor switchingis the process of changing the Public Accounting Firm (KAP) carried out by the company. Auditor switching in Indonesia can be done mandatory or voluntary. It is this voluntary auditor switching that raises suspicion from stakeholders to find out the cause. The purpose of this study was to analyze the effect of going concern opinion, KAP size and profitability on auditor switching. The results of this study indicate that the variables of going concern opinion, KAP size and profitability have no effect on auditor switching. The value of Nagelkerke R Square is 0.029, which means that the variability of the dependent variable that can be explained by the independent variable is 2.9%, while the remaining 1.9% is explained by other variables outside this research model. Suggestions for further research to have extensive information about the object of research, use other measures on the same variable, and add other variables for further research.
Dissertations / Theses on the topic "Auditor switching"
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Krishnan, Jagannathan. "Auditor switching, opinion shopping and client size." The Ohio State University, 1991. http://rave.ohiolink.edu/etdc/view?acc_num=osu1279133916.
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Sands, John Stephen, and n/a. "Auditor Switching - A Two-Stage Decision Process: An Empirical Study of Australian Companies." Griffith University. Department of Accounting, Finance and Economics, 1996. http://www4.gu.edu.au:8080/adt-root/public/adt-QGU20050901.152229.
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This dissertation is concerned with a primary and two secondary research issues. The primary issue pertains to the existence of a two-stage auditor switching decision process; that is the auditor change and the auditor selection stages. The two secondary issues concern the relative influence of variables within their respective decision stages. External auditors are engaged not only to comply with the Corporations Law requirement and Australian Stock Exchange membership conditions but also to reduce the degree of information risk assigned by financial statement users to financial statements prepared by auditee management. The decision to switch auditors may cause financial statement users to assign a higher degree of information risk to financial statements, i.e., the indirect costs of switching auditors. A substantial increase in these indirect costs may have occurred as the average rate that Australian publicly listed companies switch auditor has increased in recent years. However, prior research has provided inconsistent and inconclusive evidence with regard to the variables that influence auditees to switch auditors. To avoid mis-perceptions by financial statement users about the newly appointed auditors' attestation of the financial information prepared by auditees, a greater understanding is needed of the auditor switching decision process to assist in mitigating these indirect costs of switching auditors. In prior research the underlying suggestion why auditees switch auditors is the development of a mis-match of audit services demanded to the services supplied by the incumbent auditor. To overcome this mis-match, auditees after deciding to change auditors then select a specific audit firm that offers suitable services and possesses suitable characteristics. A suggested reason for the inconsistent findings of prior research is that there are two decision stages (auditor change and auditor selection) in the auditor switching decision process and past studies have examined, intentionally or otherwise, different decision stages. From a two decision stage perspective, there are three additional explanations for the inconsistent findings of prior research. These explanations are 1) the inappropriate use of surrogate measures for the decision stage studied, 2) the misuse of the terms auditor change, auditor selection and auditor switching, and 3) the inappropriate research methodology and instrument design employed. This absence of a 'shared agreement' among researchers about the two-stage auditor switching decision concept and misuse of terms may have confused not only researchers but also survey participants and readers of auditor switching literature thus contributing to the inconsistencies in prior evidence as well as perpetuating the inconsistent results where the readers are the future researchers. A review of the literature identified five characteristic variables of the incumbent and replacement audit firms that influence the auditor switching decision. Four variables (disagreements between auditees and auditors that result in, or are caused by, the issuance of a qualified audit report and recommendations from three external sources) in addition to the five incumbent auditor characteristics were found to influence only the auditor change decision. In addition to the five replacement auditor characteristic variables, a further five variables, involving audit firm image creation or other promotional activities, have been found to influence the auditor selection decision stage. A primary and two secondary problems regarding the auditor switching decision process are addressed (1) How and to what extent does the impact of the five auditor characteristics on Australian auditees' decisions to change auditors (to terminate the incumbent auditor's appointment) differ from that on auditees' decisions to select the replacement auditor? (2) How and to what extent are the nine variables used by Australian auditee management in the decision to change auditors (to terminate the incumbent auditors appointment)? (3) How and to what extent are the ten variables used by Australian auditee management in the decision to select a replacement auditor? The provision of evidence to support the two-stage auditor switching decision process may be achieved by jointly examining and identifying significant differences in the perceived influence of auditor characteristics across the two decision stages and a comparison of their rank order of influence within each stage. Three empirical models are constructed to investigate these three research questions. Using the MANOVA (within-subjects) design, the first model is to analyse each respondent's perception of the level of influence of each of the five auditor characteristic variables across the two decision stages. The second and third empirical models are using an one-way ANOVA design to test the influence of each of the respective independent variables (i.e., nine variables for the change decision and ten variables for the selection decision) on the respective dependent variable (i.e., the change decision or the selection decision). Fifty-three usable responses were received from Australian companies identified as voluntarily switching auditors for the reporting year ended 1990 and/or 1991. The data collected for analysis were provided by company executives of these companies. The major findings of this study are: 1) Two of the five auditor characteristics, 'level of audit quality' and 'suitability of non-audit services', differed significantly in their level of relative influence across the two decision stages. Furthermore, there was some support in the results for a perceived difference in the influence of a third auditor characteristic, 'size of audit fees', across both stages. 2) Significant differences were perceived in the level of influence of variables on the auditor change decision stage. The six most influential variables were the higher audit fees, the auditor's offices were not located near the auditee's geographically dispersed offices, the incumbent auditor's lack of industry specialisation, a higher audit quality was not provided, the non-audit services offered were unsuitable, and director's recommendations. 3) In the auditor selection decision stage, significant differences were perceived in the level of influence of variables. The six most influential variables were the lower fees, the recommendations of business colleagues, a higher quality audit can be provided, the suitability of range of non-audit services, the closeness of the auditor's offices to the auditee's geographically dispersed operations, and the availability of industry specialisation. 4) A comparison of the rank order of influence of auditor characteristic variables within each decision stage found variances exist for two variables 'closeness of auditor's offices to the auditee's operations' and 'the level of industry specialisation' across the two stages. 5) The significant difference in the level of influence of characteristics of the incumbent and replacement auditors in the first finding suggests that auditors are not perceived as providing homogeneous services. Furthermore, from the significant difference in these auditor characteristic variables within each decision stage in the second and third findings imply that the auditor characteristics of an auditor are not perceived as homogeneous. The following major conclusions are drawn from this study. The evidence from these major findings support the existence of a two-stage auditor switching decision process. The results also show that auditor switching decision makers' perceptions of the variables that influence auditor switching vary across the two decision stages and with the auditor change and auditor selection decisions. Finally, because the characteristics of the auditors vary in their perceived influence across both stages and within each decision stage, these variances suggest the auditor characteristics supplied are perceived to be heterogeneous. This perceived heterogeneity permits audit firms to differentiate their services offered and requires auditees to employ a two-stage auditor switching decision process.
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Sands, John Stephen. "Auditor Switching - A Two-Stage Decision Process: An Empirical Study of Australian Companies." Thesis, Griffith University, 1996. http://hdl.handle.net/10072/366910.
Full textAbstract:
This dissertation is concerned with a primary and two secondary research issues. The primary issue pertains to the existence of a two-stage auditor switching decision process; that is the auditor change and the auditor selection stages. The two secondary issues concern the relative influence of variables within their respective decision stages. External auditors are engaged not only to comply with the Corporations Law requirement and Australian Stock Exchange membership conditions but also to reduce the degree of information risk assigned by financial statement users to financial statements prepared by auditee management. The decision to switch auditors may cause financial statement users to assign a higher degree of information risk to financial statements, i.e., the indirect costs of switching auditors. A substantial increase in these indirect costs may have occurred as the average rate that Australian publicly listed companies switch auditor has increased in recent years. However, prior research has provided inconsistent and inconclusive evidence with regard to the variables that influence auditees to switch auditors. To avoid mis-perceptions by financial statement users about the newly appointed auditors' attestation of the financial information prepared by auditees, a greater understanding is needed of the auditor switching decision process to assist in mitigating these indirect costs of switching auditors. In prior research the underlying suggestion why auditees switch auditors is the development of a mis-match of audit services demanded to the services supplied by the incumbent auditor. To overcome this mis-match, auditees after deciding to change auditors then select a specific audit firm that offers suitable services and possesses suitable characteristics. A suggested reason for the inconsistent findings of prior research is that there are two decision stages (auditor change and auditor selection) in the auditor switching decision process and past studies have examined, intentionally or otherwise, different decision stages. From a two decision stage perspective, there are three additional explanations for the inconsistent findings of prior research. These explanations are 1) the inappropriate use of surrogate measures for the decision stage studied, 2) the misuse of the terms auditor change, auditor selection and auditor switching, and 3) the inappropriate research methodology and instrument design employed. This absence of a 'shared agreement' among researchers about the two-stage auditor switching decision concept and misuse of terms may have confused not only researchers but also survey participants and readers of auditor switching literature thus contributing to the inconsistencies in prior evidence as well as perpetuating the inconsistent results where the readers are the future researchers. A review of the literature identified five characteristic variables of the incumbent and replacement audit firms that influence the auditor switching decision. Four variables (disagreements between auditees and auditors that result in, or are caused by, the issuance of a qualified audit report and recommendations from three external sources) in addition to the five incumbent auditor characteristics were found to influence only the auditor change decision. In addition to the five replacement auditor characteristic variables, a further five variables, involving audit firm image creation or other promotional activities, have been found to influence the auditor selection decision stage. A primary and two secondary problems regarding the auditor switching decision process are addressed (1) How and to what extent does the impact of the five auditor characteristics on Australian auditees' decisions to change auditors (to terminate the incumbent auditor's appointment) differ from that on auditees' decisions to select the replacement auditor? (2) How and to what extent are the nine variables used by Australian auditee management in the decision to change auditors (to terminate the incumbent auditors appointment)? (3) How and to what extent are the ten variables used by Australian auditee management in the decision to select a replacement auditor? The provision of evidence to support the two-stage auditor switching decision process may be achieved by jointly examining and identifying significant differences in the perceived influence of auditor characteristics across the two decision stages and a comparison of their rank order of influence within each stage. Three empirical models are constructed to investigate these three research questions. Using the MANOVA (within-subjects) design, the first model is to analyse each respondent's perception of the level of influence of each of the five auditor characteristic variables across the two decision stages. The second and third empirical models are using an one-way ANOVA design to test the influence of each of the respective independent variables (i.e., nine variables for the change decision and ten variables for the selection decision) on the respective dependent variable (i.e., the change decision or the selection decision). Fifty-three usable responses were received from Australian companies identified as voluntarily switching auditors for the reporting year ended 1990 and/or 1991. The data collected for analysis were provided by company executives of these companies. The major findings of this study are: 1) Two of the five auditor characteristics, 'level of audit quality' and 'suitability of non-audit services', differed significantly in their level of relative influence across the two decision stages. Furthermore, there was some support in the results for a perceived difference in the influence of a third auditor characteristic, 'size of audit fees', across both stages. 2) Significant differences were perceived in the level of influence of variables on the auditor change decision stage. The six most influential variables were the higher audit fees, the auditor's offices were not located near the auditee's geographically dispersed offices, the incumbent auditor's lack of industry specialisation, a higher audit quality was not provided, the non-audit services offered were unsuitable, and director's recommendations. 3) In the auditor selection decision stage, significant differences were perceived in the level of influence of variables. The six most influential variables were the lower fees, the recommendations of business colleagues, a higher quality audit can be provided, the suitability of range of non-audit services, the closeness of the auditor's offices to the auditee's geographically dispersed operations, and the availability of industry specialisation. 4) A comparison of the rank order of influence of auditor characteristic variables within each decision stage found variances exist for two variables 'closeness of auditor's offices to the auditee's operations' and 'the level of industry specialisation' across the two stages. 5) The significant difference in the level of influence of characteristics of the incumbent and replacement auditors in the first finding suggests that auditors are not perceived as providing homogeneous services. Furthermore, from the significant difference in these auditor characteristic variables within each decision stage in the second and third findings imply that the auditor characteristics of an auditor are not perceived as homogeneous. The following major conclusions are drawn from this study. The evidence from these major findings support the existence of a two-stage auditor switching decision process. The results also show that auditor switching decision makers' perceptions of the variables that influence auditor switching vary across the two decision stages and with the auditor change and auditor selection decisions. Finally, because the characteristics of the auditors vary in their perceived influence across both stages and within each decision stage, these variances suggest the auditor characteristics supplied are perceived to be heterogeneous. This perceived heterogeneity permits audit firms to differentiate their services offered and requires auditees to employ a two-stage auditor switching decision process.Thesis (Masters)
Master of Philosophy (MPhil)
Department of Accounting, Finance and Economics
Griffith Business School
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Arvidsson, Wallberg Angelica, and Alexandra Åhlén. "Ekonomisk förlust för revisionsbyråer : En studie över revisorers fortlevnadsvarningar i Sverige." Thesis, Högskolan i Gävle, Företagsekonomi, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-22393.
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Syfte: Inom revisionsbranschen har rapporteringen om ett företags fortlevnad under en lång tid varit ett omtvistat ämne. Detta specifikt till följd av revisorsskandaler, då företag gått i konkurs utan att ha erhållit en fortlevnadsvarning från sin revisor. I redovisningslitteraturen finns det motstridiga argument kring huruvida revisorer anses oberoende eller inte utifrån deras benägenhet att utfärda fortlevnadsvarningar och de finansiella incitament som finns. Uppsatsens syfte är att: Undersöka om det finns något samband mellan utfärdandet av fortlevnadsvarningar och ekonomisk förlust för revisionsbyrån. Metod: Utifrån tidigare forskning har forskningsbara hypoteser deducerats fram, vilka sedan undersökts empiriskt. En kvantitativ metod har använts för att samla in data från svenska företags årsredovisningar åren 2011-2014. Dessa data har sedan testats och analyserats i ett statistikprogram och har därefter redovisats i olika tabeller. Resultat & slutsats: Denna studie har funnit bevis för den självuppfyllande profetian, vilket indikerar att revisorer drar sig för att utfärda fortlevnadsvarningar. Gällande undersökningen kring ekonomiska incitament som hot mot revisorns oberoende, ger denna studie bevis på att storleken på NAS-arvodet kan utgöra ett potentiellt hot. Studiens resultat visar även att det inte finns någon kvalitetsskillnad mellan Big 4 och icke Big 4 revisorer när det gäller utfärdandet av fortlevnadsvarningar. Förslag till fortsatt forskning: Förslag till fortsatt forskning är att kombinera de finansiella faktorerna med de icke finansiella faktorerna för att studera revisorers oberoende. En tredje begränsning med uppsatsen är att vi utgått från revisorns perspektiv, vilket innebär att förslag till fortsatt forskning är att byta till företagens perspektiv eller kombinera dessa. Uppsatsens bidrag: Denna uppsats har bidragit med mer kunskap kring den självuppfyllande profetian, ekonomiska incitaments påverkan på revisorns oberoende. Uppsatsen har även bidragit med ytterligare förståelse kring hur problematiskt det kan vara att utfärda en fortlevnadsvarning.Aim: The reporting of an organizations going concern has been center for debate during a long period of time. This is mainly due to auditing scandals where organizations have gone bankrupt without a modified going concern opinion from their auditor. In accounting literature there are conflicting claims about whether auditors are considered independent or not due to their tendency to issue a going concern modified opinion and the influence financial incentives have on auditor independence. The aim of this essay is to: Examine if there is a relation between the tendency to issue a going concern modified opinion and the financial loss for the audit firm. Method: From previous research hypotheses have been deduced. These hypotheses have then empirically been studied. A quantitative method was used to gather data from Swedish companies’ annual reports from the year 2011-2014. After gathering the data, it was tested and analyzed with a stats program and then presented in different tables. Result & Conclusions: This study has found evidence of the self-fulfilling prophecy, which indicates that the auditor withdraws from issuing a going concern modified opinion. Regarding the financial incentives as threats of audit independence, this study gives evidence that the size of Non-audit service fees poses a potential threat. The results of the study also show that there is no significant difference in quality between Big 4 and Non-Big 4 auditors regarding the issuance of going concern modified opinions. Suggestions for future research: In this study the financial factors have been taken into account, a combination of both the financial and non-financial factors is the suggestion for future research. A third limitation of this study is that is based upon the auditors’ perspective, therefore a study based solely on the companies' perspective or a combination of both is our suggestion for future research. Contribution of the thesis: This thesis contributes with more knowledge to the accounting literature. The study has provided more knowledge about the self-fulfilling prophecy, financial incentives on audit independence and the quality among Big 4 and non-Big 4 audit firms. This thesis has also contributed to further understanding of how problematic it can be for an auditor to issue a going concern modified opinion.
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Riccardi, William III. "An Empirical Analysis of the Global Audit Market: International Financial Reporting Standards-Related Changes and Differences within the Big 4 Global Networks." FIU Digital Commons, 2014. http://digitalcommons.fiu.edu/etd/1440.
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Ongoing debates within the professional and academic communities have raised a number of questions specific to the international audit market. This dissertation consists of three related essays that address such issues. First, I examine whether the propensity to switch between auditors of different sizes (i.e., Big 4 versus non-Big 4) changes as adoption of International Financial Reporting Standards (IFRS) becomes a more common phenomenon, arguing that smaller auditors have an opportunity to invest in necessary skills and training needed to enter this market. Findings suggest that clients are relatively less (more) likely to switch to (away from) a Big 4 auditor if the client’s adoption of IFRS occurs in more recent years.
In the second essay, I draw on these inferences and test whether the change in audit fees in the year of IFRS adoption changes over time. As the market becomes less concentrated, larger auditors becomes less able to demand a premium for their services. Consistent with my arguments, results suggest that the change in audit service fees declines over time, although this effect seems concentrated among the Big 4. I also find that this effect is partially attributable to a differential effect of the auditors’ experience in pricing audit services related to IFRS based on the period in which adoption occurs. The results of these two essays offer important implications to policy debates on the costs and benefits of IFRS adoption.
In the third essay, I differentiate Big 4 auditors into three classifications—Parent firms, Brand Name affiliates, and Local affiliates—and test for differences in audit fee premiums (relative to non-Big 4 auditors) and audit quality. Results suggest that there is significant heterogeneity between the three classifications based on both of these characteristics, which is an important consideration for future research. Overall, this dissertation provides additional insights into a variety of aspects of the global audit market.
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May, Amy. "Audit market concentration, auditor switching and audit fee pricing : an investigation of the UK private company audit market, 2005-2012." Thesis, University of Leeds, 2016. http://etheses.whiterose.ac.uk/16012/.
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Statutory audit markets across the EU have recently been reformed, with new Regulation on the Statutory Audits of Public Interest Entities coming into force in June 2016. The Regulation imposes stricter requirements on the audits of Public Interest Entities, as originally defined in the Statutory Audit Directive 2006, with the option for Member States to designate additional entities as public interest. Thus, the exact definition of a Public Interest Entity applied varies across Member States. In the UK the definition has not been widely extended and includes listed firms, credit institutions, and insurance undertakings. Private firms in the UK are therefore currently exempt from the more stringent audit regulations. However, even based on the limited, and often mixed, evidence for the private company audit market, the decision to preclude most private companies from the definition of a Public Interest Entity, effectively excluding them from the new audit reforms, may not be appropriate. This thesis, therefore, undertakes a comprehensive analysis of the UK audit market for private companies, in addition to examining the auditing choices of private companies and the economic consequences of these choices. The UK is specifically examined because it is one of a number of countries that have chosen not to extend the scope of the definition of a Public Interest Entity beyond the one set at the EU level. The findings of this research show that, similar to the audit market for listed firms, the private company audit market in the UK is segmented with Big Four dominance among the largest firms and relatively low levels of auditor switching. As a result of this audit environment, private companies that do switch auditor are found to experience economic consequences in terms of a reduction in their credit ratings. Particularly when the reasons for a switch are unknown to investors. In addition, the thesis provides evidence to suggest that following an auditor switch, firms receive both physical and implicit discounts on their audit fees, with price recovery of these discounts over the following three years. Suggesting that low-balling is also present in this audit market, which in turn raises concerns regarding competitive pricing and levels of auditor independence. In sum, the results of the thesis provide strong support that the definition and scope of a Public Interest Entity needs revisiting both within the UK and across all EU Member States. Moreover, it reinforces the idea of extending some of the more stringent audit requirements introduced by the EU Regulation on the Statutory Audits of Public Interest Entities, to ensure that economically important private firms have sufficient oversight.
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Taranu, Mihaela. "Commonalities and differences in visual and auditory multistability." Thesis, University of Plymouth, 2018. http://hdl.handle.net/10026.1/11983.
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Perceptual bi/multi-stability—the phenomenon in which perceptual awareness switches between alternative interpretations of a stimulus—can be elicited by a large range of stimuli. The phenomenon is explored in vision, audition, touch, and even olfaction. The degree to which perceptual switching across visual and auditory bi/multi-stable paradigms depends on common or separate mechanisms remains unanswered. This main question was addressed in the current work by using four ambiguous tasks that give rise to bi/multi-stability and which are thought to involve rivalry at different levels of cognitive processing: auditory streaming and ambiguous-structure-from-motion (low- level tasks), and verbal transformations and ambiguous figures (high-level tasks). It was also investigated if individual differences in executive function (inhibitory control and set-shifting), creativity and personality traits have common relationships with perceptual switching in adults and children. A series of five experiments (four studies) were conducted. In Study 1 (two experiments), perceptual switching behaviour of adult participants was examined in the four perceptual tasks mentioned above. In Experiment 1, participants reported higher switching rates for the ambiguous figure and verbal transformations than for ambiguous motion and auditory streaming. However, in Experiment 2 participants had a higher switching rate in verbal transformations than in auditory streaming, while the switching rates in the two visual tasks did not differ significantly. The correlations between visual and auditory switching rates were similarly inconclusive: in Experiment 1, no cross-modal correlations emerged, while in Experiment 2 there were correlations between ambiguous figure and verbal transformations and between ambiguous motion and verbal transformation. Furthermore, inhibitory control, set-shifting, and creativity correlated with perceptual ii switching rates in some of the perceptual tasks, although not in a consistent manner. In Study 2, the development of perceptual switching was investigated in children in the same four tasks used in Study 1. Findings showed that the number of switches increased with age in all four perceptual tasks, indicating general maturational developments. Executive functions and creativity were not associated with the ongoing perceptual switching, which was similar to what was found in adults. In Study 3, a neuroscientific perturbation approach was used to investigate whether the superior parietal cortex is causally involved in both visual and auditory multistability as a top-down mechanism. Transcranial magnetic stimulation on the anterior and posterior superior parietal cortex did not increase or decrease the median phase durations in response to the ambiguous motion and auditory streaming. These regions were not causally involved in either visual or auditory multistability. Perceptual switching across modalities correlated nevertheless, indicating common perceptual mechanisms. In Study 4, the effects of attentional control and instructions were further investigated in ambiguous motion and auditory streaming. There were strong correlations between perceptual switching in the two tasks, confirming that there are common mechanisms. However, the effects of voluntary attention did not explain the commonalities found. Possibly the commonalities found reflect similar functionalities at more low-level sensorial mechanisms. In conclusion, perceptual switching in vision and audition share common mechanisms. These commonalities do not seem to be due to the same neural underpinning in parietal cortex. Moreover, attentional control does not explain the commonalities found, indicating a more low-level common mechanism or functionality. Perceptual switching across all ages is task-specific, more than modality specific. No central influence of inhibitory control and creativity was constantly associated with perceptual switching regardless of task/modality, supporting the distributed mechanisms hypothesis.
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Gogani, Roya, and Jonathan Nyrén. "Revisorernas kostnad av att utge en going concern- varning." Thesis, Högskolan i Gävle, Akademin för utbildning och ekonomi, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-15697.
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De uppgifter som revisorn presenterar i sin revisionsberättelse bör intressenter och företag ha förtroende för. Revisorn ska vara en oberoende länk mellan intressenter och företag. Läsaren förväntar sig finna eventuella ekonomiska problem i årsredovisningen. Detta är dock inte alltid fallet. Det är viktigt att revisorerna kan göra en pålitlig bedömning över företagets möjligheter till fortsatt drift. Beslut om going concern-varning måste grunda sig på oberoende och god kunskap om företagets situation. En felaktig going concern-varning kan orsaka problem och intäktsbortfall för både företaget och revisionsbyrån. Intressenterna kan förlora förtroendet för företaget och företaget kan i sin tur byta revisor. Studien fokuserar på huruvida revisorerna kan vara sparsamma med att utge going concern-varning för att inte riskera att förlora företaget som klient och därmed förlora revisionsintäkter. Därför undersöker studien om det finns ett samband mellan förlorade revisionsarvoden och utfärdandet av en första going concern-varning bland svenska företag. Studien vill också visa ifall en going concern- varning ökar sannolikheten för konkurs den s.k. självuppfyllande profetian. Ett bidrag till tidigare forskning är att studien beaktar revisionsuppdragets längd i förhållande till going concern-varning. Från databasen Affärsdata har 432 företag selekterats ut från bokslutsåret 2009. Av dessa hade 216 erhållit en going concern- varning. Denna testgrupp har sedan jämförts med en kontrollgrupp med samma antal som varit finansiellt stressade men inte erhållit någon varning. Studien har använt SPSS som statistiskt program för att kunna göra önskade beräkningar. Studiens resultat visar at det finns ett samband mellan en första going concern-varning och revisorbyte. Studien visar också att längden på revisionsuppdraget påverkar benägenheten att ge en going concern-varning. Däremot finner undersökningen inte något belägg för den s.k. självuppfyllande profetian.The information that the auditor provides in their audit report should be valid in the eyes of the stakeholders of the company. The auditor should be the independent link between the company and its stakeholders. When reading the audit report, one expects to find all the possible economic problems identified in it, however this is not always the case. It is crucial that the audit of a company’s going concern is reliable. Decisions regarding going concern-modified opinions should be independent and be based on valid information regarding the company’s economic situation. One faulty going concern-modified opinion can set off a whole range of issues and revenue loss for both the company and the audit firm. Consequently stakeholders can lose their trust in the company resulting in a change of audit firm. This thesis is focused on whether or not auditors might be reluctant to hand out going concern-modified opinions in fear of losing a client and the revenue associated with it. Therefore, the thesis investigates whether or not there is a relationship between lost revenue and the first instance of issuing a going concern-modified opinion for Swedish companies. This thesis is also investigating whether the issuance of a going concern-modified opinion will increase the possibility of the company going bankrupt, the so-called self-fulfilling prophecy. A contribution to the previous research regarding the going concern issue is the consideration of audit tenure. We have used 432 companies with fiscal year 2009 extracted from the database Affärsdata. Out of this selection, 216 had been issued a going concern-modified opinion. This test group is then compared to the control group with the same number of companies that were identified as financially distressed but without receiving a going concern- modified opinion. The thesis has used the statistical program SPSS to complete the calculations needed to complete the analysis. The result shows a positive relationship between the first going concern-modified opinion and the change of audit firms. The period of time the auditing requires also effects the predisposition to issue a going concern-modified opinion. However the study was unable to find any statistical evidence for the so-called self-fulfilling prophecy.
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Seibold, Julia Christine [Verfasser], Iring [Akademischer Betreuer] Koch, and Miriam [Akademischer Betreuer] Gade. "Examining independently switching components of auditory task sets : towards a general mechanism of multicomponent switching / Julia Christine Seibold ; Iring Koch, Miriam Gade." Aachen : Universitätsbibliothek der RWTH Aachen, 2018. http://d-nb.info/1196018324/34.
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PONNAMANENI, SANJITH KUMAR. "A NOVEL AUDIO AMPLILFIER COMBINING LINEAR AND SWITCHING TECHNIQUES." University of Cincinnati / OhioLINK, 2005. http://rave.ohiolink.edu/etdc/view?acc_num=ucin1109274094.
Full textBooks on the topic "Auditor switching"
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Rivett, Mary L. Full mesh audio conferencing using the point-to-multipoint on-board switching capability of ACTS. [Washington, DC]: National Aeronautics and Space Administration, 1996.
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Ali, Maheen Fatima. Design of a 500W-1MHz off-line boost buck (C'uk) switching mode power supply for audio applications. 1987.
Find full textBook chapters on the topic "Auditor switching"
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Machmuddah, Z., St Dwiarso Utomo, and I. D. Pamungkas. "The moderating effect of managerial ownership and institutional ownership on auditor opinion, and auditor switching for fraudulent financial statements." In Business Innovation and Development in Emerging Economies, 34–46. Leiden, The Netherlands : CRC Press/Balkema, [2019]: CRC Press, 2019. http://dx.doi.org/10.1201/9780429433382-4.
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Self, Douglas. "Signal Switching." In Small Signal Audio Design, 575–609. Third edition. | Abingdon, Oxon ; New York, NY : Routledge, 2020.: Focal Press, 2020. http://dx.doi.org/10.4324/9781003031833-21.
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Hartmann, Melanie, and Dirk Schnelle. "Task Switching in Audio Based Systems." In Text, Speech and Dialogue, 597–604. Berlin, Heidelberg: Springer Berlin Heidelberg, 2006. http://dx.doi.org/10.1007/11846406_75.
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Hansika, W. K. N., Lakindu Yasassri Nanayakkara, Adhisha Gammanpila, and Ravindra de Silva. "AuDimo: A Musical Companion Robot to Switching Audio Tracks by Recognizing the Users Engagement." In Lecture Notes in Computer Science, 89–106. Cham: Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-60117-1_7.
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Kim, Jongweon, Donghwan Shin, and Jonguk Choi. "Real-Time Implementation of Broadcast Switching System Using Audio Watermark." In Digital Rights Management. Technologies, Issues, Challenges and Systems, 322–31. Berlin, Heidelberg: Springer Berlin Heidelberg, 2006. http://dx.doi.org/10.1007/11787952_24.
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Ferreira, Paulo J. S., João M. P. Cardoso, and João Mendes-Moreira. "Automatic Switching Between Video and Audio According to User’s Context." In Progress in Artificial Intelligence, 196–207. Cham: Springer International Publishing, 2019. http://dx.doi.org/10.1007/978-3-030-30244-3_17.
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Ferrari, Domenico. "Design and applications of a delay jitter control scheme for packet-switching internetworks." In Network and Operating System Support for Digital Audio and Video, 69–83. Berlin, Heidelberg: Springer Berlin Heidelberg, 1992. http://dx.doi.org/10.1007/3-540-55639-7_7.
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SELF, D. "Signal Switching." In Small Signal Audio Design, 393–421. Elsevier, 2010. http://dx.doi.org/10.1016/b978-0-240-52177-0.10016-1.
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Self, Douglas. "Signal switching." In Small Signal Audio Design, 573–604. Routledge, 2014. http://dx.doi.org/10.4324/9781315885377-21.
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CHURCH, S. "Switching and Routing." In Audio Over IP, 51–62. Elsevier, 2010. http://dx.doi.org/10.1016/b978-0-240-81244-1.00003-1.
Full textConference papers on the topic "Auditor switching"
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Putri, Erly Satya Graha, and Robert Porhas Tobing. "Auditor Switching and Initial Audit Procedures: A Case Study." In Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018). Paris, France: Atlantis Press, 2019. http://dx.doi.org/10.2991/aprish-18.2019.25.
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Stanišić, Nemanja, Zoran Petrović, Kosana Vićentijević, and Vule Mizdraković. "Auditor Switching and Qualified Audit Opinion: Evidence from Serbia." In Sinteza 2014. Belgrade, Serbia: Singidunum University, 2014. http://dx.doi.org/10.15308/sinteza-2014-552-558.
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Sukirman, Sukirman, Maylia Sari, Wulan Rachmadani, and Regita Wijaya. "The Role of Auditor Switching on Going Concern Audit Opinion Acceptance." In Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia. EAI, 2022. http://dx.doi.org/10.4108/eai.27-7-2021.2316864.
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Wang Yujiao. "Auditor switching in an enterprise group and opinion shopping." In 2015 International Conference on Logistics, Informatics and Service Sciences (LISS). IEEE, 2015. http://dx.doi.org/10.1109/liss.2015.7369656.
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Suryandari, Dhini, and Fitriana Dwiyanti. "The Effect of Company Size and Audit Opinion on Auditor Switching with Moderated by the Auditor's Reputation." In 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia. EAI, 2021. http://dx.doi.org/10.4108/eai.22-7-2020.2307882.
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Stanišić, Nemanja, Tijana Radojević, Nenad Stanić, and Danica Rajin. "THE ASSOCIATION BETWEEN AUDITOR SWITCHING AND AUDIT OPINION IN THE REPUBLIC OF SERBIA." In FINIZ 2015. Belgrade, Serbia: Singidunum University, 2015. http://dx.doi.org/10.15308/finiz-2015-9-12.
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Wiyarni and Bunyamin. "The Mediating Effect of Financial Distress on Audit Tenure and Auditor Switching Towards Audit Delay." In 2nd Annual Management, Business and Economic Conference (AMBEC 2020). Paris, France: Atlantis Press, 2021. http://dx.doi.org/10.2991/aebmr.k.210717.008.
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Fang, Chong Wenn, Ann Marie Pang Kai Sian, and Radha Krishnan Nair. "Determinants Of Client-Initiated Auditor Switching Among Public Listed Companies In Malaysia." In EBIMCS '19: 2019 2nd International Conference on E-Business, Information Management and Computer Science. New York, NY, USA: ACM, 2019. http://dx.doi.org/10.1145/3377817.3377820.
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Elisabeth, Duma Megaria, Arthur Simanjuntak, Iskandar Muda, and Syafruddin Ginting. "Corporate Social Responsibility, Auditor Opinion, Financial Distress Impact to Auditor Switching for Banking Companies in Indonesia Stock Exchange for Period of 2014 to 2017." In Unimed International Conference on Economics Education and Social Science. SCITEPRESS - Science and Technology Publications, 2018. http://dx.doi.org/10.5220/0009499909910994.
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Meiryani, Meiryani, Nadia Aliffia, Andreas Andreas, Rindang Widuri, Dianka Wahyuningtias, and Silvia Dewiyanti. "Analysis of The Influence of Audit Opinions, Change of Management, Public Accounting Firm Size, Size of Client Companies and Audit Fees on Auditor Switching." In MSIE 2022: 2022 4th International Conference on Management Science and Industrial Engineering. New York, NY, USA: ACM, 2022. http://dx.doi.org/10.1145/3535782.3535793.
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