Does auditing multiple clients affiliated with the same business group reduce audit quality? Evidence from an emerging market
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Tarih
2021
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Elsevier
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The aim of the study is to examine the association between audit quality and individual auditors providing independent audit service to the firms affiliated with the same business group. We used Turkish Listed firms traded in Borsa Istanbul between 2010 and 2016. These auditors have been associated with lower audit quality in terms of discretionary accruals, modified audit opinion and audit report aggressiveness. Our main results are robust to different specifications and the results remain unchanged regardless of the specification. Moreover, we created some interaction variables to test that such a relationship would be reversed when the audit firm where the individual auditor works, was one of the Big4. We found that individual auditors providing independent audit service to the firms affiliated with the same business group in the Big4 audit firms do not influence audit quality negatively. In addition, we found that individual auditors providing independent audit service to the firms affiliated with the same business group audit the financial statements of them in timelier manner. Overall, this paper highlights and emphasizes the importance of auditing the firms affiliated with the same business group by different individual auditors to audit quality. Copyright (c) 2020, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Açıklama
Anahtar Kelimeler
Individual Auditors, Group Affiliated Firms, Turkey, Auditor-Specific Characteristics, Big4 Audit Firms, Audit Quality, Discretionary Accruals, Modified Audit Opinion, Audit Reporting Aggressiveness, Earnings Management, Nonaudit Services, Office Size, Big 4, Independence Evidence, Individual Auditors, Partner Tenure, Busy Auditors, Agency Costs, Experience
Kaynak
Borsa Istanbul Review
WoS Q Değeri
Q1
Scopus Q Değeri
Q1
Cilt
21
Sayı
1
