Reputation Recognition and Audit Outcomes: Evidence from Chinese Auditors DOI
Wanfu Li, Lixin Su, Yu Wang

et al.

SSRN Electronic Journal, Journal Year: 2021, Volume and Issue: unknown

Published: Jan. 1, 2021

Reputation has long been recognized as an important mechanism to mitigate opportunistic behavior in the audit market. However, whether and how reputation motivates auditors provide high-quality audits is empirically not clear. We exploit Chinese market, where a group of titled "senior CPAs." Representing highest professional recognition, designation senior CPA enhances auditors' observable manner. find that, following senior-CPA designation, improve quality terms reporting audited financial statements. The also followed by several market consequences, including higher audit-fee premiums commanded larger au-dit-market shares gained CPAs, valuation earnings CPAs. Overall, our study provides novel evidence on mecha-nism shapes auditor matters capital participants.

Language: Английский

A critical review of AI in accounting education: Threat and opportunity DOI Creative Commons
Joan Ballantine, Gordon Boyce, Greg Stoner

et al.

Critical Perspectives on Accounting, Journal Year: 2024, Volume and Issue: 99, P. 102711 - 102711

Published: Jan. 18, 2024

In this essay, we contribute to the limited literature that has critically examined potential implications of generative AI on accounting academy and education (AE). We argue recent accelerated growth AI, especially large language models (LLMs) such as ChatGPT, raises significant issues challenges needs urgently address survive in long term. Developments have, suggest, created a 'change-inducing crisis', presenting unique opportunity for academics uncritical problematic functionalist view discipline technical reductionism accounting. Our arguments represent call action embrace learning teaching practices way brings about renewed focus human dimension accounting, incorporating broader social critical perspectives, thereby addressing longstanding calls change AE move beyond technical, managerial, financial (core curriculum) dominated many decades. Accounting have fundamental role play recognising nature threats associated challenge seize opportunities available ways bring both critique being fore. However, sort lead 'take back from market' provide impetus can make more relevant our students contemporary society.

Language: Английский

Citations

32
The consequences of reputation-damaging events for Big Four auditors: evidence from 110 cases with media coverage between 2007 and 2019 DOI
Matthew Ege, Dechun Wang,

Nina Xu

et al.

Review of Accounting Studies, Journal Year: 2025, Volume and Issue: unknown

Published: Jan. 10, 2025

Language: Английский

Citations

0
The Consequences of Auditor Reputation Loss: Evidence from Negative Big 4 Business Press Coverage DOI
Matthew Ege,

Dechun Wang,

Nina Xu

et al.

SSRN Electronic Journal, Journal Year: 2021, Volume and Issue: unknown

Published: Jan. 1, 2021

Prior studies use single events or where auditor culpability is hard to determine explore the consequences of reputation loss and findings vary. Using 41 high-profile audit-related negative involving Big 4 audit firms from 2008-2017, we find evidence that suggests clients react negatively loss. Specifically, auditors experiencing are more likely lose less gain new clients. Results most pronounced when demand high quality, have ex ante at stake, subject significant competition pressure. When considering market responses, fail much a response using an event-study design, but do ERCs around earnings announcements lower for with experience events.

Language: Английский

Citations

6
The Influence of Increased Financial Flexibility on Small Accounting Firms' Public Audit Client Portfolios: Evidence from the Paycheck Protection Program DOI Open Access
Yuzhou Chen, Stuart Dearden, Timothy A. Seidel

et al.

Auditing A Journal of Practice & Theory, Journal Year: 2023, Volume and Issue: 42(4), P. 205 - 222

Published: Aug. 1, 2023

SUMMARY In this study, we examine whether increased financial flexibility afforded by the Paycheck Protection Program (PPP) affects small accounting firms’ public audit client portfolio decisions. We find some evidence suggesting that firms receiving PPP loans exhibit greater selectivity. Specifically, an likelihood of auditor switching and engage new clients less business risk but potential for profitability relative to departing clients. Relative both continuing clients, lower risk. Collectively, results provide suggest through provided smaller opportunity selectively manage their portfolio. Data Availability: are available from sources cited in text. JEL Classifications: M42; M48.

Language: Английский

Citations

1
The Effect of an Audit Firm’s Ethics Scandal on Client Acquisition Practices DOI Open Access
Kevin Hale, J. Mike Truelson

Current Issues in Auditing, Journal Year: 2022, Volume and Issue: 17(2), P. P26 - P34

Published: Nov. 9, 2022

SUMMARY Auditors who engage in unethical behavior often face subsequent reputational damage, such as loss of market share to competing auditors. KPMG was recently embroiled a high-profile scandal that involved prominent members the firm inappropriately receiving confidential information about upcoming PCAOB inspections. This article summarizes study by Hale and Truelson (2022) analyzes effect on KPMG’s reputation within audit marketplace. Specifically, examines ability attract new clients, types clients acquired, fees charged clients. We then conclude discussing implications practitioners, regulators, academics. Data Availability: used this are available from public sources identified document.

Language: Английский

Citations

0
Reputation Recognition and Audit Outcomes: Evidence from Chinese Auditors DOI
Wanfu Li, Lixin Su, Yu Wang

et al.

SSRN Electronic Journal, Journal Year: 2021, Volume and Issue: unknown

Published: Jan. 1, 2021

Reputation has long been recognized as an important mechanism to mitigate opportunistic behavior in the audit market. However, whether and how reputation motivates auditors provide high-quality audits is empirically not clear. We exploit Chinese market, where a group of titled "senior CPAs." Representing highest professional recognition, designation senior CPA enhances auditors' observable manner. find that, following senior-CPA designation, improve quality terms reporting audited financial statements. The also followed by several market consequences, including higher audit-fee premiums commanded larger au-dit-market shares gained CPAs, valuation earnings CPAs. Overall, our study provides novel evidence on mecha-nism shapes auditor matters capital participants.

Language: Английский

Citations

0