Affiliation:
1. Tasmanian Audit Office Hobart Tasmania Australia
2. School of Accounting, Auditing and Taxation UNSW Business School, UNSW Sydney Sydney New South Wales Australia
3. Tasmanian School of Business and Economic University of Tasmania Hobart Tasmania Australia
Abstract
AbstractWe investigate whether the characteristics of audit committee (AC) chairs are associated with decisions about auditor choice, audit fees and audit quality. Using hand‐collected Australian data, firms with AC chairs who have longer tenure and multiple AC memberships across several boards are found to be more likely to choose Big 4 and/or industry specialist auditors, pay higher audit fees and have lower discretionary accruals. Those AC chairs with higher business qualifications are more likely to hire a Big 4 auditor, pay higher audit fees and have lower discretionary accruals, while AC chairs with professional qualifications are more likely to hire a Big 4 and/or industry specialist auditor. In contrast, firms with AC chairs who are executive directors are less likely to hire a Big 4 auditor and have higher discretionary accruals. Our findings contribute to the literature by documenting that various characteristics of AC chairs are important for enhancement of auditor selection and audit quality.
Funder
Accounting and Finance Association of Australia and New Zealand
Subject
Economics, Econometrics and Finance (miscellaneous),Finance,Accounting
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献