THE RELATION BETWEEN ENGAGEMENT QUALITY CONTROL REVIEW HOURS AND AUDITOR CHANGES: EVIDENCE FROM SOUTH KOREA

Author:

Song Jae-Won1,Kim Yong-Shik1

Affiliation:

1. Business Administration School, Hansung University, Seoul, South Korea

Abstract

The purpose of this study is to analyze whether engagement quality control review (EQCR) hours affect auditor changes and whether abnormal audit fees and changes in management have moderating effects on the relation between EQCR hours and auditor changes. The logit regression model is designed to investigate the relation between EQCR hours and auditor changes. The study finds evidence that EQCR hours are higher before auditors are changed. It also documents that abnormal audit fees weaken and that changes in management strengthen the positive relation between EQCR hours and auditor changes. In summary, high EQCR hours increase the probability of auditor changes, and the results imply that EQCR hours are a proxy for the audit risk perceived by auditors. This research is the first empirical study to test the relation between EQCR hours and auditor changes.

Publisher

Vilnius Gediminas Technical University

Subject

Economics and Econometrics,Business, Management and Accounting (miscellaneous)

Reference54 articles.

1. Review Partners' Reactions to Contact Partner Risk Judgments of Prospective Clients

2. An, H. L., & Choe, K. H. (2017). The effects of managers’ real earnings management activities on audit quality control review hours. Productivity Review, 31(4), 33–59 (in Korean). https://www.kci.go.kr/kciportal/ci/sereArticleSearch/ciSereArtiView.kci?sereArticleSearchBean.artiId=ART002307139

3. Bae, G. S., Lee, J. E., Rho, J. H., & Choi, S. U. (2015). Auditors’ differential responses to audit risks through quality control review hours. Korean Accounting Review, 40(6), 81–117 (in Korean). http://kiss.kstudy.com/thesis/thesis-view.asp?key=3379968

4. Tunneling or Value Added? Evidence from Mergers by Korean Business Groups

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3