The impact of PCAOB international registration on audit quality and audit fees: Evidence from China

Journal of Accounting and Public Policy - Tập 41 - Trang 106947 - 2022
Partha S. Mohapatra1, Hamilton Elkins2, Gerald J. Lobo3, Wuchun Chi4
1California State University, Sacramento, Department of Accounting, United States
2University of Saskatchewan, Edwards School of Business, Canada
3University of Houston, C.T. Bauer College of Business, United States
4National Chengchi University (NCCU), Department of Accounting, Taiwan

Tài liệu tham khảo

Abbott, 2013, When the PCAOB talks, who listens? Evidence from client firm reaction to adverse, GAAP-deficient PCAOB inspection reports, Audit.: J. Pract. Theory, 32, 1 Abernathy, 2013, A summary of 10 years of PCAOB research: What have we learned?, J. Account. Literat., 32, 30, 10.1016/j.acclit.2013.10.002 Aharony, 2000, Financial packaging of IPO firms in China, J. Account. Res., 38, 103, 10.2307/2672924 Aobdia, 2017, Regulatory oversight and auditor market share, J. Account. Econ., 63, 262, 10.1016/j.jacceco.2017.03.001 Ball, 2009, Market and political/regulatory perspectives on the recent accounting scandals, J. Account. Res., 47, 277, 10.1111/j.1475-679X.2009.00325.x Becker, 1998, The effect of audit quality on earnings management, Contemp. Account. Res., 15, 1, 10.1111/j.1911-3846.1998.tb00547.x Behn, 2008, Audit quality and properties of analyst earnings forecasts, Account. Rev., 83, 327, 10.2308/accr.2008.83.2.327 Carcello, 2011, The effect of PCAOB inspections on Big 4 audit quality, Res. Account. Regulat., 23, 85 Carcello, J.V., Carver, B.T., Lennox, C.S., Neal, T.L., 2014. When bonding fails: Audit firm oversight of US-listed Chinese companies. Working paper, University of Tennessee. Available at SSRN 2419152. Calderon, 2014, PCAOB international inspections, CPA J., 84, 30 Chan, 1999, “Low-balling” and efficiency in a two-period specialization model of auditing competition, Contemp. Account. Res., 16, 609, 10.1111/j.1911-3846.1999.tb00598.x Chen, 2004, Earnings management and capital resource allocation: Evidence from China’s accounting-based regulation of right issues, Account. Rev., 79, 645, 10.2308/accr.2004.79.3.645 Choi, 2009, Cross-listing audit fee premiums: Theory and evidence, Account. Rev., 84, 1429, 10.2308/accr.2009.84.5.1429 Copley, 1994, A simultaneous equations analysis of quality control review outcomes and engagement fees for audits of recipients of federal financial assistance, Account. Rev., 69, 244 Darrough, M., Huang, R., Zhao, S., 2012. The spillover effect of Chinese reverse merger frauds: Chinese or reverse merger. Working paper available at SSRN: http://ssrn.com/abstract, 2144483. Davis, 1993, Audit effort, audit fees, and the provision of nonaudit services to audit clients, Account. Rev., 68, 135 DeAngelo, 1981, Auditor independence, ‘low balling’, and disclosure regulation, J. Account. Econ., 3, 113, 10.1016/0165-4101(81)90009-4 DeAngelo, 1981, Auditor size and audit quality, J. Account. Econ., 3, 183, 10.1016/0165-4101(81)90002-1 Dee, 2011, Client stock market reaction to PCAOB sanctions against a Big 4 auditor, Contemp. Account. Res., 28, 263, 10.1111/j.1911-3846.2010.01044.x DeFond, 2011, The effect of SOX on small auditor exits and audit quality, J. Account. Econ., 52, 21, 10.1016/j.jacceco.2011.03.002 Defond, 2017, Do PCAOB Inspections Improve the Quality of Internal Control Audits?, J. Account. Res., 55, 591, 10.1111/1475-679X.12151 Du, 2013, Big Four Audit Independence and Oversight in China, CPA J., 83, 6 Ege, 2017 Fargher, 2001, The demand for auditor reputation across international markets for audit services, Int. J. Account., 36, 407, 10.1016/S0020-7063(01)00116-9 Firth, 1998, Auditor quality, signalling, and the valuation of initial public offerings, J. Bus. Fin. Account., 25, 145, 10.1111/1468-5957.00181 Francis, 1999, The role of Big 6 auditors in the credible reporting of accruals, Audit.: J. Pract. Theory, 18, 17 Fung, 2017, Does the PCAOB international inspection program improve audit quality for non-US-listed foreign clients?, J. Account. Econ., 64, 15, 10.1016/j.jacceco.2017.04.002 Ghosh, A.A., Peltier, E., 2014. How Have Auditors Managed Their Chinese ADR Engagements? Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2445065. Gramling, 2011, Are PCAOB-identified audit deficiencies associated with a change in reporting decisions of triennially inspected audit firms?, Audit.: J. Pract. Theory, 30, 59 Griffin, 2011, Audit fees around dismissals and resignations: Additional evidence, J. Contemp. Account. Econ., 7, 65, 10.1016/j.jcae.2011.10.001 Guedhami, 2014, Auditor choice in politically connected firms, J. Account. Res., 52, 107, 10.1111/1475-679X.12032 Gul, 2006, Auditors' response to political connections and cronyism in Malaysia, J. Account. Res., 44, 931, 10.1111/j.1475-679X.2006.00220.x Gul, 2010, Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China, J. Financ. Econ., 95, 425, 10.1016/j.jfineco.2009.11.005 Gunny, 2013, PCAOB Inspection Reports and Audit Quality, J. Account. Public Policy, 32, 136, 10.1016/j.jaccpubpol.2012.11.002 Hay, 2006, Audit fees: A Meta-analysis of the effect of supply and demand attributes, Contemp. Account. Res., 23, 141, 10.1506/4XR4-KT5V-E8CN-91GX Huang, 2016, Audit Market Concentration, Audit Fees, and Audit Quality: Evidence from China, Audit.: J. Pract. Theory, 35, 121 Huang, 2015, Fee discounting and audit quality following audit firm and audit partner changes: Chinese evidence, Account. Rev., 90, 1517, 10.2308/accr-50958 Khurana, 2021, PCAOB Inspections and the Differential Audit Quality Effect for Big 4 and Non-Big 4 US Auditors, Contemp. Account. Res., 38, 376, 10.1111/1911-3846.12636 Krishnan, 2003, Audit quality and the pricing of discretionary accruals, Audit.: J. Pract. Theory, 22, 109 Krishnan, 2017, PCAOB international inspection and audit quality, Account. Rev., 92, 143, 10.2308/accr-51642 Lamoreaux, 2016, Does PCAOB inspection access improve audit quality? An examination of foreign firms listed in the United States, J. Account. Econ., 61, 313, 10.1016/j.jacceco.2016.02.001 Lennox, 2010, Auditing the Auditors: Evidence on the Recent Reforms to the External Monitoring of Audit Firms, J. Account. Econ., 49, 84, 10.1016/j.jacceco.2009.04.002 Levitt, A., 1998. The numbers game. Remarks delivered at the NYU Center for Law and Business. New York, NY, September, 28. Liu, 2019, Did the SEC administrative proceedings against Chinese auditors affect audit quality?, J. Int. Account. Audit. Taxat., 37, 100290, 10.1016/j.intaccaudtax.2019.100290 Mansi, 2004, Does auditor quality and tenure matter to investors? Evidence from the bond market, J. Account. Res., 42, 755, 10.1111/j.1475-679X.2004.00156.x Matsumoto, 2002, Management's incentives to avoid negative earnings surprises, Account. Rev., 77, 483, 10.2308/accr.2002.77.3.483 Palmrose, 1986, The effect of nonaudit services on the pricing of audit services: Further evidence, J. Account. Res., 24, 405, 10.2307/2491144 Public Company Accounting Oversight Board. Form 1 – Application for Registration. Available at: pcaobus.org/Registration/Documents/Form_1_Sample.pdf. PCAOB. 20. Registration, https://pcaobus.org/oversight/registration. Raghunandan, 2006, SOX Section 404 material weakness disclosures and audit fees, Audit.: J. Pract. Theory, 25, 99 Read, 2004, Local and regional audit firms and the market for SEC audits, Account. Horiz., 18, 241, 10.2308/acch.2004.18.4.241 Simunic, 1980, The pricing of audit services: Theory and evidence, J. Account. Res., 18, 161, 10.2307/2490397 Siegel, 2005, Can foreign firms bond themselves effectively by renting US securities laws?, J. Financ. Econ., 75, 319, 10.1016/j.jfineco.2004.02.001 Sloan, 1996, Do stock prices fully reflect information in accruals and cash flows about future earnings?, Account. Rev., 71, 289 Srinidhi, 2007, The differential effects of auditors' nonaudit and audit fees on accrual quality, Contemp. Account. Res., 24, 595, 10.1506/ARJ4-20P3-201K-3752 Srinivasan, 2014, Admitting mistakes: Home country effect on the reliability of restatement reporting, Account. Rev., 90, 1201, 10.2308/accr-50887 Tanyi, 2017, The Unintended Consequences of the Frequency of PCAOB Inspection, J. Bus. Fin. Account., 44, 116, 10.1111/jbfa.12230 Venkataraman, 2008, Litigation risk, audit quality, and audit fees: Evidence from initial public offerings, Account. Rev., 83, 1315, 10.2308/accr.2008.83.5.1315 Weber, 2008, Does auditor reputation matter? The case of KPMG Germany and ComROAD AG, J. Account. Res., 46, 941, 10.1111/j.1475-679X.2008.00298.x