Continuing professional education and audit quality: evidence from an emerging market
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Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Group Publishing Ltd
Access Rights
info:eu-repo/semantics/closedAccess
Abstract
Purpose In this paper, the authors examine the association between the amount of continuing professional education (CPE) hours per staff and audit quality in terms of discretionary accruals and audit opinion. Design/methodology/approach Several methodologies are adopted to test the hypotheses, including the ordinary least square (OLS) and logistic regression (Logistic). The authors also employ instrument variables regression with two least square (IVREG with 2SLS) and instrument variables probit model (IVProbit) to address the possible endogeneity and strengthen the validity of the main estimation results. Findings The main results show that there is a positive and significant relationship between CPE hours per staff and audit quality. As the authors grouped CPE into four areas (finance, auditing and accounting, tax, law and regulations and others) the results are more robust for the sub-sample accounting and audit and others. Moreover, the findings of this study suggest that CPE hours per staff do not affect audit quality significantly for Big4 audit firms compared to non-Big4 firms. Research limitations/implications The sample size of the present study is quite small because the transparency reports of the audit firms in Turkey have been available since 2013 and the authors could not reach some auditor demographics at the individual level and some attributes at the audit firm level. Besides, some alternative audit quality measures, such as audit effort, audit fees are not employed because they are not disclosed. Originality/value This study contributes to the audit literature using Turkish audit firms. The authors believe that the setting of Turkey may yield interesting results because of the data it provides.
Description
Keywords
Continuing Professional Education, Audit Quality, Modified Audit Opinion, Discretionary Accruals, Individual Engagement Partners, Audit Firms, M40, M41, Earnings Management, Client Importance, Partner, Association, Performance, Firms, Opportunities, Perceptions, Governance, Disclosure
Journal or Series
Asian Review Of Accounting
WoS Q Value
N/A
Scopus Q Value
Q2
Volume
30
Issue
4
