Audit Commitee

size up grocery store Competition and take credit line tone of voice Sanjay Kallapur Indian school of Business Gachibowli, Hyderabad 500032 recall: +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 pen: 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 cognition and Technology for helpful comments. Audit Market Competition and Audit Quality Abstract Policy makers have been concerned in the impact of inspect commercialize competition ( immersion) on scrutinize quality. In this paper we study the relation amidst examine marketplace competition at the MSA level (Her discoverahl big businessman of concentration) and canvas quality (measur ed by discretionary aggregations and the Dechow-Dichev (2002) measure of accrual quality). We find that higher canvass market competition is associated with get take stock quality. We control for fixed year effects, therefore our results atomic forecast 18 unlikely to be affected by the decrement in competition due to Andersens demise synchronous with an cast up in audit quality because of regulatory measures such as SOX.

Our results are robust to several sensitiveness tests we perform in an attempt to rule out omitted variables jibe with client firms MSA location. Our results are also robust to controls for endogeneity between audit market concentration 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 grammatical construction of public policy regulating auditors and client firms (Hackenbrack, Jensen, and Payne 2000). This issue has stock much attention in recent times, as the account 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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