The purpose of the paper is to examine how the relationship between small and medium sized enterprises (SMEs) and their auditor varies between regions. Auditing literature, regional, and network studies are used to ...The purpose of the paper is to examine how the relationship between small and medium sized enterprises (SMEs) and their auditor varies between regions. Auditing literature, regional, and network studies are used to set up hypotheses on differences between rural regions and the metropolitan urban region. Survey data from 421 SMEs are analyzed and findings support that in rural regions, especially those with a strong entrepreneurial culture and tight inter-organizational links, the SME-auditor relationship is to a larger extent trust-based compared to the urban region. In the rural region, the auditor assumes the role as a business support agent providing valuable strategic advice. The SME-auditor relationship is weakest in the urban region where the auditor's role is limited.展开更多
The intellectual capital is a main source of competing advantage. Many studies developed measure(s) of intellectual capital of industrial and service firms. Few studies have tried to develop a reliable measure of in...The intellectual capital is a main source of competing advantage. Many studies developed measure(s) of intellectual capital of industrial and service firms. Few studies have tried to develop a reliable measure of intellectual capital in audit firms. This study extends the current models to provide more insight into the role of intellectual capital in audit firms. The aim of this study is to develop a quantitative model to measure audit firms' intellectual capital. The suggested model can be used to explore the relationship between the intellectual capital in audit firms and audit quality. The model combines the main components of intellectual capital (human capital, structural capital, and relational capital). The suggested model provides a tool that may help to better manage the intellectual capital in audit firms. As this is a theoretical study, a number of hypotheses are presented for testing in the future.展开更多
Going concern is one of essential things for user to make a financial decision. This research aims to explore factors that caused the issuance of going concern audit report by auditor. This research adds two new varia...Going concern is one of essential things for user to make a financial decision. This research aims to explore factors that caused the issuance of going concern audit report by auditor. This research adds two new variables, audit size and audit committee, besides the other factors that cause auditor issue a going concern audit report. This research uses a regression logistic analysis to determine the relationship of each variable (liquidity, solvability, profitability, cash flow, audit firm size and audit committee) to going concern audit report. Different from previous researches, the results of this research show that liquidity, profitability, cash flow, and audit committee are not significant to influence the issuance of audit opinion. Audit size has a more significant relationship to audit opinion, while solvability is the most significant factor.展开更多
This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an ana...This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an analysis of the current audit market for public companies are offered. This paper also sheds light upon the potential independence problems resulting in low audit quality and current barriers to audit researches in Kazakhstan. Consistent with the findings of extant researches on audit quality and the general perceptions of investors, two hypotheses were developed, i.e., the audits performed by Big 4 audit firms in Kazakhstan also have higher quality than non-Big 4 audit firms in terms of audit tenure and the frequency of issuing modified opinions. The result confirms the hypothesis that Big 4 audit firms provide higher audit quality than smaller local firms in association with audit tenure instead of in relation to the frequency of issuing modified opinions. The result indicates that Big 4 audit firms may not be as independent as they will be in a highly litigious market. Therefore, an independent inspection should be regularly implemented according to the audit law, and the inspection report should be publicized by Chamber of Auditors (COA)1. If this is not practical due to the lack of qualified inspectors, a peer review may be an altemative to implement the quality control policy immediately. To the author's best knowledge, this is the first audit quality research in countries of the Commonwealth of Independence States (CIS).展开更多
Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit...Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit fees, going concern reports, and non-audit services. This study investigates audit quality differentiation between the Big 4 and non-Big 4 audit firms hypothesis from an audit objective point of view. One of the material objectives of Japanese internal control audit institutions is to facilitate assessment and improvement of internal controls by corporations themselves. The findings of this study indicate that the Big 4 audit firms accomplish this objective better than non-Big 4 audit firms. Consequently, most Big 4 clients do not disclose significant deficiencies (SDs), implying that they improve the quality of internal controls through internal controls auditing. This paper concludes that Big 4 firms produce a higher audit quality level than non-Big 4 firms, and this quality difference iS related to how an audit objective is interpreted and implemented.展开更多
文摘The purpose of the paper is to examine how the relationship between small and medium sized enterprises (SMEs) and their auditor varies between regions. Auditing literature, regional, and network studies are used to set up hypotheses on differences between rural regions and the metropolitan urban region. Survey data from 421 SMEs are analyzed and findings support that in rural regions, especially those with a strong entrepreneurial culture and tight inter-organizational links, the SME-auditor relationship is to a larger extent trust-based compared to the urban region. In the rural region, the auditor assumes the role as a business support agent providing valuable strategic advice. The SME-auditor relationship is weakest in the urban region where the auditor's role is limited.
文摘The intellectual capital is a main source of competing advantage. Many studies developed measure(s) of intellectual capital of industrial and service firms. Few studies have tried to develop a reliable measure of intellectual capital in audit firms. This study extends the current models to provide more insight into the role of intellectual capital in audit firms. The aim of this study is to develop a quantitative model to measure audit firms' intellectual capital. The suggested model can be used to explore the relationship between the intellectual capital in audit firms and audit quality. The model combines the main components of intellectual capital (human capital, structural capital, and relational capital). The suggested model provides a tool that may help to better manage the intellectual capital in audit firms. As this is a theoretical study, a number of hypotheses are presented for testing in the future.
文摘Going concern is one of essential things for user to make a financial decision. This research aims to explore factors that caused the issuance of going concern audit report by auditor. This research adds two new variables, audit size and audit committee, besides the other factors that cause auditor issue a going concern audit report. This research uses a regression logistic analysis to determine the relationship of each variable (liquidity, solvability, profitability, cash flow, audit firm size and audit committee) to going concern audit report. Different from previous researches, the results of this research show that liquidity, profitability, cash flow, and audit committee are not significant to influence the issuance of audit opinion. Audit size has a more significant relationship to audit opinion, while solvability is the most significant factor.
文摘This paper provides empirical evidence on audit quality in Kazakhstan as measured by audit tenure and the frequency of issuing modified opinions. In addition, an overview of audit institutions of Kazakhstan and an analysis of the current audit market for public companies are offered. This paper also sheds light upon the potential independence problems resulting in low audit quality and current barriers to audit researches in Kazakhstan. Consistent with the findings of extant researches on audit quality and the general perceptions of investors, two hypotheses were developed, i.e., the audits performed by Big 4 audit firms in Kazakhstan also have higher quality than non-Big 4 audit firms in terms of audit tenure and the frequency of issuing modified opinions. The result confirms the hypothesis that Big 4 audit firms provide higher audit quality than smaller local firms in association with audit tenure instead of in relation to the frequency of issuing modified opinions. The result indicates that Big 4 audit firms may not be as independent as they will be in a highly litigious market. Therefore, an independent inspection should be regularly implemented according to the audit law, and the inspection report should be publicized by Chamber of Auditors (COA)1. If this is not practical due to the lack of qualified inspectors, a peer review may be an altemative to implement the quality control policy immediately. To the author's best knowledge, this is the first audit quality research in countries of the Commonwealth of Independence States (CIS).
文摘Many prior research findings indicate that audit quality differs between the Big 4 and non-Big 4 audit firms using an indicator variable. However, most previous research focuses on only outcome measures, such as audit fees, going concern reports, and non-audit services. This study investigates audit quality differentiation between the Big 4 and non-Big 4 audit firms hypothesis from an audit objective point of view. One of the material objectives of Japanese internal control audit institutions is to facilitate assessment and improvement of internal controls by corporations themselves. The findings of this study indicate that the Big 4 audit firms accomplish this objective better than non-Big 4 audit firms. Consequently, most Big 4 clients do not disclose significant deficiencies (SDs), implying that they improve the quality of internal controls through internal controls auditing. This paper concludes that Big 4 firms produce a higher audit quality level than non-Big 4 firms, and this quality difference iS related to how an audit objective is interpreted and implemented.