The selection of a proper auditor is driven by several factors. Here, we use three data mining classification techniques to predict the auditor choice. The methods used are Decision Trees, Neural Networks and Support Vector Machines. The developed models are compared in term of their performances. The wrapper feature selection technique is used for the Decision Tree model. Two models reveal tha...

We examine whether firms that share an auditor with at least one of their major customers are less likely to make accounting restatements compared to firms that do not have such links with their customers. Based on a sample of 4,808 firm-year observations during the period over 20002009, we find evidence supporting this prediction. We also show that this common auditor effect is mainly driven b...

Auditor Independence, Dismissal Threats, and the Market Reaction to Auditor Switches Author(s): Siew Hong Teoh Reviewed work(s): Source: Journal of Accounting Research, Vol. 30, No. 1 (Spring, 1992), pp. 1-23 Published by: Wiley-Blackwell on behalf of Accounting Research Center, Booth School of Business, University of Chicago Stable URL: http://www.jstor.org/stable/2491089 . Accessed: 17/08/201...

Prior research has examined audit pricing for publicly held firms and provided some evidence of a Big 8 premium in pricing. We investigate audit pricing among private firms for the first time, and we compare audit pricing for private and listed clients. The relatively great degree of dispersion in auditor choice (between Big 5 and non-Big 5 auditors) in our large sample of privately held audit ...

The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor’s main objective is to serve the ...

.•\bstract—Theoretical research suggests that large auditors have more incentive to issue accurate reports compared to small auditors (DeAngelo. 1981; Dye, 1993). Controiling for the client characteristics of large and small auditors, this paper shows that large auditors issue reports that are more accurate and more informative signals of financial distress. These findings are consistent with t...

An outlier is defined as an observation that is significantly different from the other data in its set. An auditor will employ many techniques, processes and tools to identify these entries, and data mining is one such medium through which the auditor can analyze information. The enormous amount of information contained within transactional processing systems' logs means that auditors must empl...