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Auditor career concerns, audit fees and audit quality
Journal article

Auditor career concerns, audit fees and audit quality

Hsihui Chang, Junxiong Fang and Phyllis Lai Lan Mo
Asia-Pacific journal of accounting & economics, v ahead-of-print(ahead-of-print)
04 Jul 2021

Abstract

Business & Economics Business, Finance Economics Social Sciences
This study examines how engagement signing auditors' career concerns affect audit fees and audit quality. Based on a sample of listed companies in China, we find that audit fees and audit quality are lower for firms audited by auditors in their early years of being signing auditors. Moreover, we find that the results are more pronounced for signing auditors in local Chinese audit firms than those in Big 4. These results may be attributed to differential quality control mechanism and incentive systems. Our results have implications for regulators and audit firms in formulating standards and guidelines on monitoring newly promoted signing auditors.

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10 citations in Scopus

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Business, Finance
Economics
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