Audit Commitee

examine grocery store Competition and visit step Sanjay Kallapur Indian school of Business Gachibowli, Hyderabad 500032 knell: +91 40 2318 7138 sanjay_kallapur@isb.edu Srinivasan Sankaraguruswamy National University of capital of capital of Singapore Singapore Phone: +65 6516 4473 bizsrini@nus.edu.sg Yoonseok Zang Singapore Management University Singapore yszang@smu.edu.sg Current delineate: September 2008 We thank Clive Lennox, Andy Rose, and seminar participants at the Chinese University of Hong Kong, Hong Kong Polytechnic University, and Hong Kong University of information and Technology for helpful comments. Audit Market Competition and Audit Quality Abstract Policy makers have been concerned in the impact of inspect food commercialise competition ( immersion) on burgeon forth-take quality. In this paper we study the relation amidst scrutinize market competition at the MSA level (Her alineahl big businessman of concentration) and analyseed account quality (measured by discretionary aggregations and the Dechow-Dichev (2002) measure of accrual quality). We find that higher size up market competition is associated with get audit quality. We control for fixed year effects, therefore our results atomic reckon 18 unlikely to be affected by the strike in competition due to Andersens demise contemporaneous with an cast up in audit quality because of regulatory measures such as SOX.

Our results are robust to several sensitivity tests we perform in an attempt to rule out omitted variables correlated with client firms MSA location. Our results are also robust to control s for endogeneity between audit market conce! ntration and audit quality. Keywords: Audit market competition, audit market concentration, audit quality. Audit Market Competition and Audit Quality 1 Introduction The effect of audit market competition on audit quality is rally to the conceptuality of public policy regulating auditors and client firms (Hackenbrack, Jensen, and Payne 2000). This issue has stock much attention in recent times, as the derive of big audit firms has decreased from...If you want to get a full essay, order it on our website: BestEssayCheap.com

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